Tuesday, January 27, 2009

Hutchinson News cuts staff, cites profit decline

The Hutchinson News says it will layoff four employees and institute a plant-wide furlough amid declining profits.

Publisher John Montgomery cites a downturn in advertising and increases in operating expenses.

Montgomery says the newspaper advertising business tends to fluctuate very closely with the retail economy. He says the Christmas season was soft and notes the decline in classified revenue could be tied to slower sales of cars and real estate.

He says employees, including management staff, will take an unpaid week off between Feb. 1 and April 30 in a move to avoid additional layoffs. The company also plans to eliminate Saturday business hours.

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