US Newspaper Publisher Slashes Workforce

18 June 2008

SACRAMENTO, California: The second largest US newspaper publisher, McClatchy, is to cut staff numbers by 10% in response to tough economic conditions and the continuing migration of advertising online.

The company, which has traditionally done all it can to avoid lay-offs when times are bad, estimates around 1,400 jobs will have to go.

The move will save it around $70million (€45m; £35.8m) per year - part of the $95m to $100m it plans to trim from its overhead through the next four quarters.

Says ceo 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."

Data sourced from Financial Times online; additional content by WARC staff