This company is facing a desperate need for cash as it faces paying off its debt. At this pace, within two months at least it will be in control of the bankers, who are a bloodless lot. They will reduce wages where there is no contract, and try to negotiate give-backs with the unions. They also will entice people to leave, but will not be offering any buyouts because that worsens MNI's precarious position. I also expect them to move more health care costs to employees, suspend the 401K payments, hike ad rates, and curtail travel. I also believe they will close the Washington bureau, which makes so little money for the operation with the McClatchy wire that it cannot carry its weight by itself.Folks, the paragraph above tells you what to expect at McClatchy over the next weeks and months. And as for the Washington bureau, McClatchy has not cut any staff there, despite eliminating 20 percent of the employees at its 30 daily newspapers. DC bureau chief John Walcott complains he has lost some staff (David Westphal and 2 regional reporters) due to attrition and other reasons. The Cairo bureau is on hiatus, too. (I blogged about the DC bureau -- "The Untouchables" -- here.) I don't foresee the DC bureau being shut down, but a major reduction -- 30 percent, 40 percent, maybe more -- is inevitable.
What will McClatchy cut next?