Lexington Herald-Leader to cut 22

Kentucky.com:

The Lexington Herald-Leader said Wednesday it would reduce its workforce by 11 percent through a combination of 22 layoffs, 13 buyouts and the elimination of some open positions and temporary work.

The company went through a similar workforce reduction about three months ago. Citing the sharp revenue declines that have beset the media industry, Publisher Timothy M. Kelly said in a memo to staff, “Unfortunately, we’ve seen that more is required.”

The reductions announced Wednesday are part of cuts by the paper’s owner, the McClatchy Co., which is the third-largest U.S. newspaper chain. The owner of 30 daily newspapers said Tuesday it would eliminate 1,150 jobs, or 10 percent of its workforce.

McClatchy is still paying off more than $2 billion in debt that it took on in 2006 to buy the Knight Ridder newspaper chain, which owned the Herald-Leader.

Traditional media companies have been hit by slumping advertising revenues brought on by the economic downturn, as well as the migration of ad revenue to the Internet, where rates are lower.

While the Herald-Leader operates the most trafficked local news Web site at www.Kentucky.com, online advertising still contributes only about 12 percent of the paper’s total advertising revenues.

Since the first of the year, the Herald-Leader has reduced its workforce by the equivalent of 71.5 positions, or 16.6 percent.