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Newspaper Publisher McClatchy to Cut 1,600 Jobs

Authored by Mark Hefflinger on March 9, 2009 - 9:01am.
Sacramento, Calif. - McClatchy (NYSE: MNI), the nation's third-largest newspaper publisher, announced a restructuring plan on Monday that will see the company lay off 1,600 employees, reducing its workforce by about 15% "as the company accelerates efforts to manage through an increasingly poor national economic environment." The layoffs will begin by the end of the first quarter, and are expected to save the company up to $110 million over the next year, while incurring an estimated $30 million of severance costs.

The restructuring plan also involves wage reductions across the company.

Sacramento, Calif.-based McClatchy publishers 30 daily newspapers, including The Sacramento Bee, Miami Herald and Kansas City Star, in addition to 50 non-dailies.

The company also owns stakes in CareerBuilder and Classified Ventures, and operates various direct marketing and direct mail businesses.

"We have been transitioning steadily from a traditional newspaper company to a hybrid print and online, news and advertising company for some time," said McClatchy chairman and CEO Gary Pruitt.

"The effects of the current national economic downturn make it essential that we move even faster to realign our workforce and make our operations more efficient. We previously discussed a plan to reach a targeted level of cost savings, but given the worsening economy, we must do more."

 

Related Links:
http://finance.yahoo.com/news/McClatchy-Announces-prnews-14578309.html

http://snipurl.com/dgvdq (AP)

Published in DMW Daily, March 9, 2009
tags: Advertising | Newspapers | Layoffs | Publishing | McClatchy |



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