In what’s being called a “cost-cuting spree,” McClatchy Co. announced on Monday that it is eliminating another 1,600 jobs. The company has cut down nearly one third of its work force in less than a year.
According to the AP, the layoffs will start before April. The latest round of cuts will save McClatchy at least $300 million annually, exceeding their previously set target of $110 million.
Since June, McClatchy has eliminated 4,150 jobs – more than 30% of the work force throughout its 30 dailies. The company is also reducing salaries, including that of its CEO Gary Pruitt. He’s getting a 15% pay cut. Pruitt got a $1.1 million salary in 2007. His 2008 pay is not yet known. Sacramento Bee labor leaders were hoping Pruitt’s pay cut would be larger, capping his salary at $500,000 this year.
The Sacramento Bee is losing 128 jobs. In order to save some jobs, workers from several McClatchy papers have agreed to pay cuts and unpaid furloughs of one week.
McClatchy had a drop of $343 million in revenues last year.