Concerns about the future of the nation's largest newspaper publisher, Gannett Inc. (GCI), have intensified this week after the company said Chief Executive Craig Dubow will go on extended medical leave for a second round of back surgery to treat an undisclosed, spine-related ailment.

A doctor told the company that the 54-year-old will likely be out of work for four months to address his persistent back problem, said Gannett spokeswoman Tara Connell, who declined to provide more details but noted that Dubow could return to work sooner than expected.

Dubow's absence comes as Gannett and the rest of the newspaper industry suffer a sharp, financial decline because of the global recession and rise of digital media. Gannett and its counterparts are now scrambling to find new business models as the industry undergoes mass layoffs and newspaper shutdowns.

Meanwhile, rumors are circulating about a fresh round of lay-offs and salary cuts at Gannett stemming from a recent post on a well-known blog operated by a former company employee called Gannett Blog. Connell wasn't immediately available to comment on the post.

Shares of Gannett have traded down by about 10% since the company announced Dubow's leave of absence following Monday's closing bell. The drop outpaces the declines of other media stocks and the overall market.

Gannett shares fell Thursday 7.3% to $3.57.

Since Dubow took over in July 2005, the stock has fallen roughly 95%. All newspaper stocks have plummeted in value during that time, and most observers stop short of faulting Dubow's leadership for the company's misfortunes. Nevertheless, the decline happened on his watch and the questions now surrounding his health, at a time of crisis for the company, have led some to wonder whether he will return to the helm.

"People were asking about the company's succession plan even before [Dubow's absence]," said Ken Doctor, a newspaper analyst with Outsell Inc. "The big question is what kind of company will Gannett be in the future and what kind of person is going to lead it."

Gannett, for its part, fully expects Dubow back later this year.

"There's no thought here that this is anything but a temporary absence [for Dubow]," Connell said.

Dubow will remain chairman of the company's board during his leave, but Gannett's chief financial officer, Gracia Martore, has taken over the chief executive role. Her leadership is widely viewed as a stabilizing force, because the 57-year-old has overseen the company's most immediate priority: restructuring Gannett's $3.7 billion debt load to avoid a cash crunch.

Still, both Dubow and Martore have received criticism for building up the company's debt load in order to repurchase shares at high prices. Fitch Ratings analyst Mike Simonton said Gannett had "more work to do than most" in order to ease short-term liquidity concerns because of its heavy exposure to short-dated debt instruments.

John Rogers, chief executive of Ariel Investments, Gannett's largest shareholder with a 12.25% stake, believes company officials when they say Dubow will return.

"[Dubow] is a young man, and they've been so straightforward with me in the past," Rogers said. "I take them at their word that he'll be back in full force."

Rogers said he remembers Dubow experiencing discomfort in meetings, but he had no idea that his health situation was this serious.

"I've never experienced anything quite like this," Rogers said about Dubow's unexpected absence.

That said, Dubow's leave of absence hasn't changed Ariel's view on Gannett's prospects as an investment.

"Gannett has solid franchises like USA Today and CareerBuilder that are unique and will benefit when the economy recovers and the ad dollars come back," said Rogers, who is known in the investment community as a contrarian. "We think the stock is extraordinarily cheap, and we have a lot of confidence in Craig, Gracia and the board."

-By Nat Worden, Dow Jones Newswires; 212-416-2472; nat.worden@dowjones.com