McClatchy to Reduce Workforce by 10%
McClatchy, the publisher of 30 daily papers and 50 non-daily publications, said it is cutting its workforce by about 10%, which estimates the reduction will affect some 1,400 full-time positions.
"We have been transitioning steadily and successfully from a traditional newspaper company to an integrated multimedia company for some time," McClatchy CEO Gary Pruitt said in a statement. "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. I'm sorry this requires the painful announcement we are making today, but we're taking this action to help ensure a healthy future for our company."
McClatchy will reduce its workforce through both voluntary and involuntary separations, as well as managed attrition. Though the company offered no details as to where cuts will occur, it stressed that it "historically has not used broad layoffs to manage staff size, relying instead on attrition and selected job eliminations through outsourcing. This has been an effective strategy, resulting in workforce reduction of 13% between the end of 2006 and April 2008, but today's more competitive media environment and challenging operating conditions mean the company must move more aggressively to shape the overall workforce."
Pruitt added that "It's important to recognize this move as part of a continuing, strategic vision for successful future operations, not solely a response to today's adverse conditions. McClatchy is committed to remaining a healthy, profitable company positioned not only to meet current challenges, but to take full advantage of opportunities for growth as we restructure to support our mission of delivering high quality news and information. Our five-year plan has recognized the need for a workforce smaller than today's; in adjusting to the current economic environment, we find we must move more quickly to that goal."
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