Tuesday, July 21, 2009

Look for McClatchy to emphasize its expense reductions

In today's conference call, look for Gary Pruitt to emphasize major cuts in expenses across the company. A commenter at the Yahoo message board points to major cuts he has seen at Kansas City:
I work for them in Kansas City, I don't know what earnings will be, but I can tell you they're cutting costs all over the place. We use to have 8 sub-stations in the metro. It is now down to one. Cut employees salaries as much as a 1/3, bought out employees contracts. Recycling everything from paper to straps on paper! Now I heard another round of cuts are coming.

Analysts and investors will want to know if the cuts are enough to offset the huge revenue loss.
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2 comments:

Anonymous said...

The Star has become continually more pathetic and poorly written. The Mike Hendricks (teid with Jason Whitlock for laziest writer at the Star)column for July 20th was no more than a less entertaining rip-off of a 1994 Jerry Seinfeld stand-up routine. Hendricks: "Ever since Neil Armstrong took that giant leap for mankind, we’ve been posing this question: If we can land people on the moon, then how hard can it be to achieve just about anything?" Seinfeld: "We never should have landed a man on the moon. It's a mistake. Now everything is compared to that one accomplishment. Neil Armstrong should have said, "That's one small step for man, one giant leap for every, complaining, sob on the face of the earth. "

Anonymous said...

As a carrier for KC, I can say that I use to grumble about the size of the paper when it was $1.25for a Sunday. Now that the price has jumped, the paper is so small now.

In a time when you need to keep your customers happy, raising the customers costs and shrinking the product is NOT the right way to be going. This is a great way to lose customers, especially when its not a needed product in their lives. Its a wanted product!

Give the customer something of value.