Cuts have been proposed at The Philadelphia Inquirer and Daily News to the tune of $28 million.

Deep breaths.

Now, we must continue…as posted on JimRomenesko, CEO Bob Hall e-mailed employees regarding the status.

Here’s an excerpt:

“As you heard me say many times, these are challenging days for the media industry, our newspapers and Philly.com. I am still optimistic about our future, but fully recognize that we will need to make substantial changes in the way we do business to succeed in a very competitive and economically challenging marketplace.”

Pointing out a successful relocation of offices to 801 Market Street, Hall pointed out a research project, launching new products, and new labor contracts.

“As I said previously, these talks will be the toughest challenge we have ever encountered as a company. We need to change many practices and cost structures to meet industry standards. These changes are critical if we want to survive, maintain jobs, and grow our company. This will include substantial tasks for the management of the company, leaders of the various unions, and all employees. There will also be substantial changes in management and non union employees as we restructure the entire organization.”

The letter continued but essentially, he concluded by emphasizing the need to “dramatically reduce costs and restructure our operations.”