The Newspaper Death Spiral Continues
McClatchy Co., in the midst of $110 million cost-cutting measure, will fire 1,600 employees and cut salaries of many others, according to The Wall Street Journal. The number represents roughly 15 percent of the ailing newspaper company’s workforce. The move comes eight months after 1,400 lost their jobs. Each of the company’s 80 papers will be allowed to implement the job cuts as they best see fit.
McClatchy’s stock price, which has lost three-quarters of its value in the past three months, was roughly unchanged from Friday’s open.
Meanwhile, in California, newspaper union employees under the McClatchy’s banner are voting to save their own.
The California Media Workers Guild voted to take a pay cut in order to limit the number of layoffs across the union. As a result, 34 Sacramento Bee workers — instead of 53 — will be laid off. As many as 26 of those employees will be from the editorial side.
Staffers who still have jobs will face up to six percent pay cuts and be placed on a week-long furlough in the second half of the year.
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