I have worked for 2 newspaper chains for a total of 12 years and still work at a paper on the circulation side today.
Many papers have laid off people. Several 2 newspaper cities have turned into 1 newspaper cities. The big trend I see within the industry is to cut costs, not necessarily people. Many newspaper employees are leaving voluntarily as they feel the "writing is on the wall".
The lower revenue trend has slowed, most of the cuts have been made. It is not unusual to bring in a new reporter at 25K a year to replace someone who was laid off making 60K a year.
It is a long hour job, depending on the paper it could be swing shifts 24/7, and being the new one, expect to work the major holidays. You would need to do the job for the love of it, not to make a ton of money.
From someone inside the industry, I wish you the best. Good writers make my job easier to sell the product.