McClatchy institutes company-wide pay freeze

Posted August 14, 2008 5:23 p.m. EDT
Updated August 14, 2008 7:24 p.m. EDT

— McClatchy Co., the second-largest U.S. newspaper publisher, is freezing pay across the company for a year starting Sept. 1 in the latest effort to hold down costs.

The company, which owns The News & Observer in Raleigh and The Charlotte Observer, informed its employees about the pay freeze Thursday.

McClatchy has some 13,000 full-time equivalent employees at 30 daily papers such as The Sacramento Bee and The Miami Herald, as well as about 50 non-dailies.

Elaine Lintecum, the company's treasurer, said the cost-control measure was undertaken "in light of our very difficult advertising revenue environment." She did not say how much money the move would save.

In June, McClatchy announced it was trimming its work force by about 10 percent, affecting 1,400 full-time jobs and saving $70 million a year.

Last month, the company reported a 44 percent drop in second-quarter earnings to $19.7 million, as revenue fell 16 percent to $489.7 million.

McClatchy shares rose 10 cents, or 2.6 percent, to close at $4 Thursday.