McClatchy (MNI) Bleeds To Death, Cuts Workforce

Posted: June 16, 2008 at 8:20 am

McClatchy posted disastrous advertising revenue numbers for May. Total ad sales at the company fell 16.6%. Total revenue was down.15.1%. With the top line falling that fast, it is hard to say how long the company can last as an independent entity.

Online advertising was up a modest 12.9%, not nearly enough to offset disappearing print revenue. Total classified advertising fell 27.4%.

McClatchy also announced that it would cut 10% of its workforce, roughly 1,400 employees.

By some miracle, McClatchy CEO Gary Pruitt will keep his job. He made the comment that "We have been transitioning steadily and successfully from a traditional newspaper company to an integrated multimedia company for some time."

There is no evidence that the statement is true.

Douglas A. McIntyre

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