Saturday, November 15, 2008

N&O changes delivery system

The News & Observer has hired a contractor to handle distribution of its newspaper, a move that will trim 17 full-time and 58 part-time positions.

Penske Logistics in mid-January will begin transporting newspapers to sites in the N&O's circulation area where carriers pick them up for delivery to homes and businesses, publisher Orage Quarles III said.

"We are making this move to serve our customers more effectively, efficiently and economically while focusing on our core business: producing relevant and compelling news and advertising information in our newspaper and on our Web sites," said Quarles, who added that the decision came after years of review.

Penske is expected to hire some drivers losing their N&O jobs, provided they meet Penske and government standards. The newspaper company will offer severance and health care continuation for those who do not land employment. Some workers have decided to retire.

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