So is McClatchy about to drop the hammer?

Good luck to all those affected. Awful. Just awful.

 

From rumors I'm hearing from friends at some of the smaller suburban papers, they might be combining shops and making some big cuts.

 

Sorry to hear bama, Whiskey and all those others who are affected. And just because you didn't lose your job doesn't mean you aren't affected in some way.
Here I thought McClatchy was the best chain to work for.
It's startling and sad and discouraging -- all at the same time.

 

any word on the News & Observer in Raleigh ... that's my "hometown" paper even though I haven't lived in Raleigh in a long time ... this is a tough thread to read today ...

 

As I understand it, Raleigh is to lose 16 full- and part-time positions in the newsroom, 70 overall.

The State (Columbia, SC) is only just now reaching the voluntary buyout phase, but there will be immediate layoffs at the voluntary buyout deadline if the number (12) is not met.

 

Getting back to the financial mess that got them there, I was talking with my CPA friend about the news. He looked back at some of their stuff and said it wasn't a surprise that they fucked themselves over. I guess they grossly overvalued their intangible assets, and when tested by the SEC, had overvalued things by more than a billion dollars. They started having to pay it back in '07 and combined with other debt, it really sent them off the cliff. He said in many other companies, this is often the beginning of the end.

What a great day.

 

Good luck to bama, Whiskey and anybody else hit by this crap.

 

Good luck, bama and whiskey.

 

Good luck to all being affected.

This thread is reminding me of the chapter in Arthur Koestler's book "Darkness at Noon", when the main character Rubasov and his neighbor in the next cell feel the tension in the air as "political differences are being settled tonight."

 

I see that the stock is down 20 cents now. Interestingly, I noticed that the ratings of one analyst listed on the NY Times stock research page for McClatchy now lists the company as a "buy," up from a "hold." Again, that is only one analyst of nine listed. The others remain bearish on MNI.

Personally, until Carl Icahn swoops in to buy the stock, demands a seat on the board of directors and begins leveraging a management shakeup, I'm not looking to add any media holdings to my portfolio.

 

The KC Star is cutting 120 across the board:

http://www.kansascity.com/746/story/665726.html

 

The Raleigh News & Observer is losing 70.

Following is the text of an e-mail message to employees of The N&O from Publisher Orage Quarles III:

I am writing today to tell you that The News and Observer is reducing its workforce by 70 positions, or about 8% of the total.

This is a painful but necessary step. 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.

Reductions will occur in News, Production, Circulation, Advertising, Information Services and Marketing. Employees affected by this reduction are being notified as quickly as possible and being provided with information about the severance program and their last day. They will be provided with a transition package that includes severance pay and benefits continuation. We also will provide outplacement services.

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 full-time equivalent jobs, or 10% of the company's workforce - is available at 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 News and Observer is making other changes in its business model and operations. Those changes will be announced during the upcoming week.

This is also a difficult and disorienting time 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 animated 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 any questions about the transition program, please contact human resources. If you have any questions about departmental or structural changes, please contact your department manager. Thank you again for your continued service and cooperation.