My company announced today it was suspending its employer match for 401(k) contributions indefinitely. We’re already in the second year of an indefinite wage freeze. What’s next? Healthcare? Dental insurance? I might as well work at Walmart.In the past year, McClatchy has lopped off more than 20 percent of its workforce, implemented a wage freeze, and started outsourcing advertising and accounting jobs to India. Corporate executives sold their luxury jet in August. Several McClatchy properties are on the market. Employees already feel they have been asked to do the work that 2 or 3 employees did before the layoffs.
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But, revenue continues to fall -- October revenue was down 18 percent from a year ago. Which means there is pressure to make deeper cuts. McClatchy hasn't yet suspended its employer match for 401k contributions, but other newspapers have done it. Other options are reducing healthcare benefits, even cutting medical coverage for retirees.
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Are you hearing anything about other cuts or reductions?
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12 comments:
I know employees don't want to hear this but "take the next buyout offered" it's not going to get better. I did and believe me it is better. You going to hold on and you'll be left with nothing.
It's not hard to envision a McClatchy across-the-board ten percent pay cut in 2009.
"Stay if you want," they'll be saying in effect. And not surprisingly many will.
No I don't have any inside information or anything; this is what companies do when struggling to survive.
Only a fool would gamble that McClatchy will be around in its current form a year from now.
With retailers dying off in droves and credit in deep freeze, the revenue bleed will accelerate beyond what cost controls can offset.
Dumping assets won't gain much. Even if some hot parking lot property was wanted, a potential buyer just has to wait for better terms, after the corporate collapse.
Walmart needs people with marketable skills. They don't hire English majors.
More employees.
This holiday season will be the most look at season as far as sales generated from retail, and I'm sure McClatchy will look closely at the numbers to see where more reductions can be found in staffing.
Would not be shocked to see McClatchy papers reduce more in December to keep their 2009 budgets as lean as possible.
As things at McClatchy worsen do you really think that they will continue to offer buyouts? NO!!!!
Take them while you can.
One thing is for certain. When they do file for bankruptcy you can forget about buyouts, pensions or anything else, and if you're a shareholder you will lose everything. McClatchy can't even begin to satisfy their debt.
It is too late for buyouts now. This company is facing a desparate 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.
I expect more cuts at different papers except KC Star and Ft Worth. DIdn't they just make cuts in November?
Does anybody now if the cuts made this month 50 at the KC Star got boyouts?? That should tell the story. If so, what?
At least one of the cuts at the KC in November received a buy out. I can't speak for the others.
last wednesday 10 finance employees @ The KC Star were told that their jobs would be outsourced by infosys in india & that their last day would be on/about feb 20. meanwhile they are forced to train their replacements.
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