Monday, August 25, 2008

Tailspin!?... Sacramento Bee offers buyouts... 5th McClatchy newspaper this month!

The Sacramento Bee announced Monday that buyouts will be offered to a majority of permanent employees. Sacbee.com:
The Bee offered voluntary buyouts to the majority of its full-time employees today and hinted that another round of layoffs is possible as well.

The buyouts represent the latest round of cost cutting at The Bee, which is facing a big slump in advertising revenue. Two months ago the newspaper eliminated 86 jobs as part of an across-the-board layoff ordered by its parent, The McClatchy Co. of Sacramento. McClatchy imposed a companywide wage freeze two weeks ago.

But Bee executives said today they needed to make more cuts. The economic downturn has deepened and The Bee, like the rest of the newspaper industry, continues to struggle with the migration of business to the Internet and other media.

But Bee executives said today they needed to make more cuts. The economic downturn has deepened and The Bee, like the rest of the newspaper industry, continues to struggle with the migration of business to the Internet and other media.

"It's about continually looking at your work force and looking at your economic projections and trying to bring those in line," Bee Publisher and President Cheryl Dell said. "We thought that we had that two months ago, but with the worsening economy, we just need to do more."

She added that bankruptcies of several advertisers, including Room Source, Linens N Things and Mervyns, has contributed to the uncertainty.

Dell said another round of layoffs is possible if there aren't enough voluntary buyouts. But she said it was "premature to establish a target or quota" for the buyouts. The buyouts were offered to 55 percent of the paper's full-time employees and a smaller number of part-timers, she said. About 44 percent of all employees are being offered buyouts.

In March, the Bee offered buyouts to a limited number of employees. On Bloody Monday the Bee announced it was cutting 86 positions.
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Hat tip: Romenesko
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Previous August job cuts:
Kansas City Star offers buyouts -- 4th McClatchy paper this month
Fort Worth Star-Telegram offer buyouts... again
Modesto Bee offers buyouts to all full-time employees
Herald-Leader to offer another round of buyouts

4 comments:

Anonymous said...

WE ALL KNOW THE ECONOMY IS BAD BUT WHY IS MCCLATCHY THE ONLY ONE THAT IS LAYING OFF SO MANY? IS IT POOR MANAGEMENT OR ARE THY USING THE ECONOMY AS AN EXCUSE TO GET RID OF GOOD WORKERS.

Anonymous said...

The Wichita Eagle offered buyouts today, too.

Kevin Gregory said...

Wichita Eagle? Thanks for the tip!

Anonymous said...

McClatchy was actually slow to layoff people, compared to the other major chains...the KR deal was bad, but MCC had a reputation for penny-pinching even during tight times.