McClatchy Co. (MNI), the nation’s third-largest newspaper chain, is cutting 10% of its workforce, or 1,400 employees. The company is reporting a 15% drop in May revenues, including a 17% drop in advertising. Online revenue rose 12% in the first five months of 2008.
Chief executive Gary Pruitt says the cuts will come via layoffs as well as attrition and will save the company $70 million annually. The restructuring, he said, is part of McClatchy’s transition “from a traditional newspaper company to an integrated multimedia company.”
McClatchy publishes the Fort Worth Star-Telegram, The Miami Herald and the Sacramento Bee. In a not so long-ago era, it was considered one of the healthier newspaper chains, with papers in mostly fast-growing markets. Pruitt says the company plans to trim expenses by $95 to $100 million in the next four quarters.
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