Layoffs, reported to be 20% of the staff, are happening now in the Chicago Tribune newsroom.

• The New York Times Co.'s bank balance is running a bit low, but that hasn't detered the company from handing out lavish pay packages. The company's CEO, Janet Robinson, received a total compensation package valued at $5.58 million in 2008, up from $4.14 million in 2007. [NYP, HP]
• Is Rachel Maddow losing her glow? March was the lowest-rated month so far for Maddow's MSNBC show since its debut last fall. [LAT]
• The Chicago Tribune plans to cut another 20 percent of its newsroom staff as it looks to reduce expenses amid continuing declines in advertising. [CB]
• Yahoo posted a 78 percent decline in quarterly profits and said it would eliminate about 675 more jobs, or 5% of its work force. [WSJ]
• Tonight is Len Berman's last night at WNBC. [NYDN]

The Chicago Tribune is bankrupt and will lay off 20 percent of its staff on Wednesday. So how is it going to survive? By making its reporters rewrite items from gossip blogs!

Looks like we have some competition for tracking the media elite's bleat-replete tweets! Our competitive edge: We bring you the very worst of the Twitterati. Today's targets:

• More bad news for the magazine biz: Ad pages fell 26 percent during the first quarter, although you probably guessed that when you used last month's issue of any number of Condé Nast magazines to floss your teeth. [NYT]
• Steve Brill plans to save journalism! Or die trying, at least. [NYT]
• Sam Zell now says his acquisition of the parent company of the Chicago Tribune in 2007 was "a mistake." And a rather expensive one at that. [CT]
• Is NBC's long ratings slump over? Jeff Zucker sure is hoping so! [LAT]
• 20/20's Bob Brown has been dismissed after 30 years at the network. Insult to injury: He was told he could freelance for the network if he wants. [P6]

Feeling out of it? Then go read what media types like Amanda Congdon and Sarah Lacy are saying about themselves on Twitter. You'll feel better instantly!

• Hachette is cutting salaries and asking staff to work overtime. Fun! [Gawker]
• Amazon is blaming an "embarrassing and ham-fisted cataloging error" for the dropping the sales rankings of thousands of gay and lesbian books. [AFP]
• Bravo has picked up four new shows, including one produced by Sarah Jessica Parker and another by Demi Moore and Ashton Kutcher. [THR, THR]
• NBC's Boston affiliate, WHDH, has backed down from its threat to skip Jay Leno's new 10pm show when it debuts this fall. [B&C]
• Marriott will no longer automatically provide guests with a free copy of USA Today or the Journal. You're gonna have to ask for it from now on. [E&P]

Just when you think it can't get any worse in Chicago media—that's right, it gets worse! Both major papers are already bankrupt. Now the Chicago Tribune is cutting another 20% of its newsroom. Ehhhhh.

If you have no idea what people on Twitter are talking about, fear not. They have no idea what they're talking about, either. The latest mutterings from Chris Anderson, John Byrne, and other online twits:

Why gripe in your cubicle when you can "cc:" the entire Internet? That's what a Daily Show producer, a Chicago Tribune columnist, and a Time critic did on Twitter:

Anyone have a handkerchief? What? Oh, nothing in particular — just the tearjerking phenomenon of seemingly intelligent people like Jake Tapper, Rachel Sklar, and Paul Carr spending so much time sharing so little on Twitter:

Chicago Tribune editors sat on the Rod Blagojevich story starting in October. Publishing Dec. 5th seems to have only pissed off the Justice Department and wrecked what might have been a much bigger scoop.

Wiretap transcripts yesterday indicated that Tribune Company honcho Sam Zell might have subtly conveyed (wink-wink) that he might just have to restructure (wink wink) one or more bothersome Chicago Trib editorial writers out of their jobs in response to demands from Illinois governor Rod Blagojevich, who was delaying a deal to buy the Chicago Cubs from cash-strapped Zell. Insanely, it has emerged that the whole thing was Blago's evil wife's idea ("hold up that fucking Cubs shit. . . fuck them"), but also that it seems to have gone nowhere.

Lee Abrams, Tribune Co.'s "Chief Innovation Officer" of AWESOMENESS (pictured, with top advisers) is back with another hard-rockin', mind-shockin' memo to blow the socks off all you naysayers who thought newspapers could never change! Abrams is already single-handedly responsible for the ten dumbest things said about newspapers this year, and that was before he busted out yesterday talking about "freedom to have so much belief on the brand." Are you trying to upstage your own slammin' track record of badass, Martian declarations on journalism, Lee? I think you are! The Chicago Tribune just unveiled a redesign, which seems like a good occasion for a big old memo from Lee Abrams. High five! All ellipses are in the original text, people:

As errors continue to mount at Bloomberg News, the question isn't just whose heads will roll, but from how high up on the org chart. The financial newswire avoided cratering Apple Inc stock with its premature Steve Jobs obituary last month because markets had been closed for half an hour by the time the false item was published. Bloomberg's incorrect report stating Sarah Palin had been arrested for drunk driving 22 years ago garnered little notice before it was corrected. But now Bloomberg has done some real damage. It incorrectly flashed a headline to terminals Monday stating United Airlines had filed for a second bankruptcy, sending shares to $3 from $12 and wiping out close to $1 billion in stock market valuation. After a halt in trading, the stock recovered to $11 by the end of the day. But the damage to both investors and to Bloomberg's reputation has been done. It hardly helps that the incorrect news bubbled up through a bizarre series of events:

In these uncertain times for the newspaper industry, it pays to think "outside of the newspaper box" when it comes to coverage of breaking news events. So the Chicago Tribune is trying its hand at live-blogging! And they picked the perfect unfolding story: Droopy-eyed comedian Bill Murray's parachute jump at the Chicago Air and Water Show! Which we would make fun of, except that that is, sadly, the most important piece of news occurring in America at the moment (we've looked). Let's check in on the up-to-the-minute coverage of Capt. Zissou's perilous skydive:

Ann Marie Lipinski, who went from summer intern to editor of the Chicago Tribune, is stepping down. Why? She won't really say! Except that "this position is not the fit it once was." Which is to say, not the position it was from 2001 until crazy billionaire Sam Zell bought the Tribune Company in 2007? Maybe? "Her resignation comes two months after George De Lama, the paper's managing editor for news, announced he was leaving the Tribune after 30 years." And little more than a month after Zell announced he was trimming 500 pages of news a week from his many flailing newspapers. Meanwhile-is publisher and David Hiller out at the L.A. Times? Basically every decision he's made since arriving at the paper from Chicago has enraged the already miserable LAT staff, so we figured he'd stick around for a while longer.

"Scott C. Smith is stepping down as publisher of The Chicago Tribune and president of Tribune Publishing as part of changes being made by Samuel Zell." [Times]

Tribune CEO Sam Zell famously cursed one of his journalists earlier this year when asked whether refocusing the company would undermine serious journalism. He called such thinking "classic... journalistic arrogance." But now Zell is struggling to service $12.8 billion in debt amid a weak economy, and he's planning what sounds like mass layoffs and newsprint reductions to meet the challenge. The cuts would fall hardest on the journalists who produce the least output — just the sort of emphasis on quantity over quality once-supportive reporters and editors at the Los Angeles Times, Chicago Tribune and Orlando Sentinel are likely to abhor:

Tribune Co. owner and noted asshole Sam Zell's most charming feature might be his sense of humor. Forget about all the cutbacks at the L.A. Times and how he's trying to drop Newsday: He enjoyed the video a Chicago Tribune intern did for the rival Chicago Sun-Times mocking Zell for selling the naming rights to Wrigley Field. That's leadership! Memo after the jump via L.A. Observed.