Newspaper publisher McClatchy Co. is slashing 1,400 jobs, or 10 percent of its work force, as part of an accelerating drive to cut costs as advertising revenues dwindle, the company announced Monday.
McClatchy also reported a 15.4 percent decline in advertising revenues in the first five months of the year. McClatchy is the No. 3 U.S. newspaper company with 30 dailies, including The Miami Herald and the Fort Worth Star-Telegram.
The cuts come amid a broad retrenchment in the U.S. newspaper industry as the economic downturn combined with competition for classified advertising from online rivals like Craigslist has resulted in a steep slump in advertising revenues.
Many other newspaper publishers have also announced job cuts and layoffs in recent months, but McClatchy's companywide cost-cutting drive marked an unusually broad and deep effort to contain costs.
McClatchy said in a statement that the job cuts will be made through a combination of voluntary departures, layoffs and attrition.
The company said it has not historically used widespread layoffs to control staff size, relying instead on attrition, outsourcing and limited job cuts.
McClatchy, which is still working to reduce debt from its $4 billion purchase of Knight Ridder in 2006, said it has already reduced head count by 13 percent from the end of 2006 through April of this year.
The cited "today's more competitive media environment" for needing to move "more aggressively" to reduce its work force.
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