McClatchy to cut 10 percent of work force

McClatchy Co. said Monday it will cut 10 percent of its workforce in a move to save $70 million a year as the newspaper publisher continues to struggle to attract advertising dollars.

McClatchy, which publishes the Kansas City Star and Miami Herald, will trim about 1,400 employees. The staff reductions are part of a plan to reduce overall expenses by $95 million to $100 million over the next four quarters.

"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," said McClatchy Chief Executive Gary Pruitt, in a statement.

McClatchy said in April that it swung to a loss in the first quarter as a weakening economy and competition from online rivals led to a 15 percent plunge in advertising revenues at its newspapers.

On Monday, the company said May revenue fell 15.1 percent year-over-year, and ad sales were down 16.6 percent. Declines in print advertising were partially offset by a 12.9 percent gain in online advertising revenue last month.

For the first five months of the year, total revenue has declined 14.2 percent, includinga 15.4 percent drop in ad sales. Online ad sales have grown 11.9 percent year to date.

---

AP Business Writer Jennifer Malloy in New York