McClatchy to cut 1,150 jobs, halve quarterly dividend

17 September 2008

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.