McClatchy Cutting 1,600 Jobs

 

SACRAMENTO, CA (March 9, 2009) – McClatchy announced today plans to cut 1,600 more jobs, or about 15 percent of its workforce, across the company by the end of the first quarter as advertising revenue continues to decline and the economy falters.

The company has been under heavy pressure to cut costs in the face of a heavy debt load acquired when McClatchy bought the newspaper chain Knight Ridder in 2006.

The company said the 1,600 jobs will be eliminated through attrition, job consolidations, severance programs, and outsourcing. The company said it expects these job reductions will cost as much as $30 million in severance costs.

McClatchy's daily newspapers include The Miami Herald, the Sacramento Bee, and the Anchorage Daily News.

CEO and McClatchy board chairman Gary Pruitt will take a 15 percent cut in his base salary, and won't receive a bonus for 2008 or 2009, the company said, and other executives will receive a 10 percent salary cut.

 

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