The McClatchy Co. publishing empire, which is the country's third-largest newspaper company, will lay off 10 percent of its work force due to a downturn in the economy, The Wall Street Journal reports. Chief executive Gary Pruitt called the cuts "painful" and said "We're taking this action to help ensure a healthy future for our company." The layoffs will effect 1,400 employees and trim roughly $70 million from its annual budget.

The announcement comes on the heels of the news that McClathy's advertising revenues fell 17 percent in May, leading to a company-wide revenue decline of 15 percent. Online ad sales rose 13 percent.

McClatchy's, whose Kevin McClatchy says his family is nothing like the Bancrofts, laid off 13 percent of its staff between the end of 2006 and April of this year.