Mumbai: The McClatchy newspaper company today announced its second major round of job cuts in three months and said it would cut its quarterly dividend payable on 6 October by half, to 9 cents per share, blaming on falling advertising revenues.

While half of the job cuts would come as voluntary retirement options and attrition, the rest would be through layoffs, the newspaper group said.

McClatchy Co's announcement was followed by reports that the Star-Ledger of Newark New Jersey is planning to close operations amidst falling advertisement revenues.

McClatchy said its advertisement revenues plummeted amidst weak economic fundamentals and the continuing shift to internet advertising.

The group's advertising revenue declined nearly 18 per cent in August over last year over a 19 per cent drop in June and July. McClatchy's classified advertising dropped 30 per cent in August, while national advertising declined 20 per cent. Overall print media advertising declined 20 per cent.

McClatchy's online advertising revenue rose 7.4 per cent while Internet ads made up 13 per cent of overall advertising revenue at the company.

McClatchy Co, which cut 1,400 jobs in two months ago and announced a one-year pay freeze for employees to save over $70 million, expects the latest job cuts and other initiatives to help it save around $100 million, over the next year.

''It is painful to announce these staff reductions, but the continued restructuring of our company is necessary given the relentless economic downturn and its impact on our business,'' Gary Pruitt, chairman and chief executive, said in a statement.

He said the cuts should position McClatchy to grow as a digital company and to deliver ''high-quality news and information in whatever medium our readers want to receive it."

Sacramento, California-based McClatchy said it would provide severance and continuation of benefits to affected employees.

The cutbacks already have begun as individual McClatchy newspapers, including The Sacramento Bee and The Olympian in Olympia, Wash, offered voluntary buyouts in recent weeks. Additional reductions would take effect over the next few months.

McClatchy owns 30 daily papers, including the Bee and The Miami Herald, and about 50 non-daily newspapers.