So is McClatchy about to drop the hammer?

Someone just sent me this:

June 16, 2008

TO: State Publishing Company Employees

RE: Workforce Changes

I am writing today to tell you that The State is accelerating plans to reduce its workforce by about twelve employees or 3%.

These are painful but necessary steps. We’re operating in a time of great change and challenge for our operations, for The McClatchy Company and for the newspaper industry overall. Increased competition and a pronounced economic downturn have combined to reduce revenues dramatically, and these cuts are part of the way we must respond. As you know, we have already been transitioning to new ways of doing business, and we are now accelerating that effort. We are confident in our ability to navigate to a stable and prosperous future as an integrated media company serving as our community’s most trusted supplier of news and advertising information.

Involuntary reductions will only occur in the newsroom and managed attrition will apply to some other areas. Certain eligible newsroom employees will be given the opportunity to voluntarily elect a severance package. However, if enough employees do not take the voluntary option, we will need to reevaluate work flow and business needs to determine if additional involuntary reductions need to be made. Employees whose positions are eliminated on either a voluntary or involuntary basis will be provided with the same transition package that includes a severance pay allowance and benefits continuation.

Eligible newsroom employees are being notified today and being provided with information about the severance program. We plan to have all voluntary elections approved and involuntary reductions identified by June 27 so that we can notify affected employees as quickly as possible.

In the recent past, we have reduced overall employment through attrition and as technology and other options made it possible to operate effectively with fewer employees. Today's difficult economic climate demands that we move faster than normal attrition provides. We will continue to manage through attrition and individual job elimination elsewhere in the company.

As a news company, we have often reported on such transitions in other industries. Now we face the painful reality of severing employment ties with valued friends and colleagues, many of whom have served the company well for many years. We are sorry to do so, and will do everything possible to make their transition as smooth as possible.

Other workforce reductions were also announced today throughout McClatchy. A press release detailing those actions - amounting to about 1,400 jobs, or ten percent of the company's workforce - is available at www.mcclatchy.com <http://www.mcclatchy.com>. As CEO Gary Pruitt says there, "McClatchy is committed to remaining a healthy, profitable company positioned not only to meet current challenges, but to take full advantage of opportunities for growth as we restructure to support our mission of delivering high quality news and information."

The State is making other changes in its business model and operations, as well. Last November we began outsourcing much of our advertising production, a move that has trimmed costs, improved our access to state-of-the-art technology and quickened service to our customers. Other changes have reduced costs and improved the efficiency of how we insert advertising preprints into our newspaper. We also have joined with other McClatchy newspapers to regionalize our information technology resources to meet the needs of The State and six other McClatchy newspapers in the Carolinas.

As our online operations have grown, we have reduced the number of printed copies of The State circulated in the furthest reaches of South Carolina. This has produced significant savings as an increasing number of customers are able to access our news and advertising content in print, online and through the electronic edition of The State on the web.

Such changes can be difficult and disorienting for those of us who remain on the job. Your continued effort and dedication are the foundation of our faith in the future, and we know from experience what a talented and productive group you are. The public service mission that has always guided us remains unchanged, but we will need to make many other changes as we adapt to today's far more competitive media landscape. We will be working diligently alongside you to ensure that we do so.

If you have questions, please contact me or Diane Frea in Human Resources. Newsroom employees with questions may contact the executive editor, managing editor and deputy managing editor. Thank you again for your continued service and cooperation.

Henry