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McClatchy to slash 10% of workforce again

September 17, 2008|From the Associated Press

NEW YORK — The McClatchy newspaper company announced its second major round of job cuts in three months Tuesday and blamed a sour advertising environment in trimming its payroll by 10%.

Although the announcement did not specifically refer to layoffs, McClatchy Co. said only half of the 1,150 new reductions would come through voluntary buyouts and attrition.

The company said the job cuts and other initiatives across the company would save $100 million over the next year, not including severance costs of about $20 million.

In June, McClatchy announced a trim to its workforce of about 10%, which meant the loss of 1,400 full-time jobs and savings of $70 million a year. Two months later, it announced a one-year pay freeze for remaining employees effective Sept. 1.

McClatchy, which is based in Sacramento, has 30 daily papers, including the Sacramento Bee and the Miami Herald.

On Tuesday, the company said advertising revenue declined nearly 18% in August from the same period last year.

McClatchy shares fell 30 cents, or 8.8%, to $3.10 in extended trading after the revenue and cuts were announced.

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