McClatchy Co. (MNI) posted a first-quarter loss of $2 million, despite reducing expenses by 21 percent or $68.8 million, not including severance costs, and refinancing a portion of its debt.

The publisher of The Miami Herald saw compensation costs decrease by 25 percent as revenue fell 8.2 percent, including an 11 percent drop in ad revenues.

“Even though we expect advertising revenues to be down in the second quarter, we believe the ad trend will continue to improve,” CEO Gary Pruitt said in a statement. “We will remain vigilant on costs,” he added.