It seems the thing to do this weekend is save Chronicle so here is my advice: Fire Everyone.
Fire all the reporters and editors then hire them again as independents based on ad-revenue profit sharing and performance-driven contracts. Reporters write stories. Editors pick and polish stories from reporters. Newspapers package and distribute news, ads, and classifieds. With cost shaved down to ankles and revenue optimized by performance feedback, they can survive.
It's all done with a mix of technologies: CMS, feeds, IM, VOIP. Editors subscribe to writers' feeds and selected articles go out to candidate feeds. Augmenters subscribe to the candidate feeds and output enriched (spellcheck, grammar corrections, image, article layout hints etc) versions. Section editors selects from daily harvest of enriched articles for each edition. Layout designers and ad providers feeds off that to add section layout hints and ads. All newspaper has to do is select section editors and print what they produce. It's a complex mesh of people working in real-time. Some will work part-time and some will be amateurs but pros will get the premium they deserve for availability and quality.
Although the component technologies to make this happen exists, integration and deployment will be tricky. But, in the end, successful newspapers of tomorrow will resemble a mix of manufacturing clusters at low level and factory line at high level , populated independents each working out of self-interest, a tightly integrated ecosystem, a Jungle of Journalism.