The McClatchy Company, the third-largest US newspaper publisher, announced plans Monday to cut its workforce by about 10 percent due to a "difficult advertising market" and other challenges, according to Agence France-Presse (AFP). The move will mean about 1,400 job cuts including "both voluntary and involuntary separations" and attrition, according to the group based in Sacramento, California.
"The company will retain its strategic focus on sales, news and online operations as it realigns operations, with decisions about the size and profile of changes differing by location," according to a statement. "We have been transitioning steadily and successfully from a traditional newspaper company to an integrated multimedia company for some time," said McClatchy chief executive Gary Pruitt.
"The effects of the current national economic downturn—particularly in real estate, auto and employment advertising—make it essential that we move faster now to realign our workforce and make our operations more efficient. I'm sorry this requires the painful announcement we are making today, but we're taking this action to help ensure a healthy future for our company."
McClatchy historically has relied on attrition instead of layoffs to manage staff size, "but today's more competitive media environment and challenging operating conditions mean the company must move more aggressively to shape the overall workforce," the company statement said.
"It's important to recognize this move as part of a continuing, strategic vision for successful future operations, not solely a response to today's adverse conditions," Pruitt said.
The moves will lead to savings of about 70 million dollars from staff costs as part of a plan to reduce overall expenses by 95 million to 100 million dollars over the next four quarters.
McClatchy-owned newspapers include the Miami Herald, the Sacramento Bee, the Fort Worth Star-Telegram, the Kansas City Star, the Charlotte Observer, and the News & Observer in Raleigh, North Carolina. In 2006, McClatchy bought Knight Ridder Newspapers in a 6.5-billion-dollar buyout.
