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Restructuring usually translates to "we're losing money" in any business. I'm sorry to hear about anybody losing their job and also unimpressed that they are being fired to "ensure...the right team" can be more effective. The fired employees were not an effective part of the news team?

Is this restructuring a reflection of changing viewership or viewing habits rather than an eroding economy?  

Catpaw:
To answer your questions, I think a little bit of both.  Advertising revenue is down nationwide. Let's face it the econonmy ain't doing so well.  But yes, or industry is changing, too.  It has been the topic of much discussion and ink in the trade magazines.  Checkout poynter.org, tvspy.com, journalisbjobs.com, or the American Journalism Review.  You'll see countless stories about how the industry is going through some major changes.  Not all too unlike what happened when news started shifting from radio to TV, right now TV is shifting to the Internet.  Video on demmand is the name of the game.  Yes, viewership is down.  And more people are getting their news (including some local) on the Net.  But our job is to figure out how to cater to that audience.  One caveat: Web surfers aren't big fans of ads.  So it's the job of the industry to figure out a way to translate what we do to the Web and still make money so we can eat.  More precisely, it's also our job as journalists to learn ways to connect with our audience and tell stories in new, interactive ways.  Hence, blogs like this.