Tuesday, September 16, 2008

No Light in August

McClatchy, owners of the Miami Herald, is cutting its staff by an additional 10 percent or 1,150 jobs. That's on top of the 1,400 people it laid off earlier this summer.

The hit at the Miami Herald totals 119 jobs. Back in June, about 250 positions were elminated.

McClatchy blamed poor August ad revenue, which declined about 18 percent. It slashed its dividend by half to 9 cents a share in order to retain cash for operations. Over the next year, McClatchy will retain about $100 million in cash that would have gone to dividends. McClatchy is trading at about $3 a share. I never thought I'd see the day this would happen, but here it is in all its weary glory.

And I'm sure there is plenty more to come from other newspaper companies.

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