Wednesday, Mar. 11, 2009

The State Media Co. announces layoffs

The State Media Co. today announced the layoff of 38 people -- 11 percent of its work force -- and wage reductions ranging from 2.5 percent to 10 percent for the rest of the employees.

Among those laid off were three vice presidents including editorial page editor Brad Warthen.

"We are seeing the worst advertising climates in our lifetime," said president and publisher Henry B. Haitz III. "It is a very difficult time that requires unfortunate measures."

Nine newsroom employees were laid off and others could see their hours reduced, executive editor Mark Lett said. The names of the affected newsroom employees were not released.

"These are challenging times for newspapers, made even more difficult because we must part with newsroom professionals who have contributed outstand-ing work to this company and this community," Lett said. "Journalists affected by today's cuts have been valuable and valued members of this newsroom."

The actions are part of companywide layoffs and cost-cutting measures announced Monday by The State's parent company, The McClatchy Co.

The Sacramento, Calif.-based company said it would eliminate 15 percent of its work force -- about 1,600 jobs -- to offset advertising revenues that have plunged during the recession and pay down debt from its 2006 acquisition of Knight Ridder.

"The newspaper is profitable," Haitz said of The State. "But, as you know, we are part of The McClatchy Co. and are working toward the goals of the overall company."

In South Carolina, McClatchy owns The State, The Sun News in Myrtle Beach, The Herald in Rock Hill, the Beaufort Gazette, and the Island Packet in Hilton Head.

-- Rock Hill eliminated six positions, cut wages 2.5-10 percent and transferred its printing operations to Charlotte.

-- Myrtle Beach laid off 20 employees and reduced wages 9.1 percent, effective May 4. An additional 58 positions were eliminated with the transfer of its printing operations to Charleston.

-- The Hilton Head and Beaufort papers eliminated 17 positions, including eight open posts. The papers reduced pay for all employees.

In North Carolina, McClatchy owns The Charlotte Observer and the Raleigh News & Observer.

Nationally, its newspapers include The Kansas City Star, The Sacramento Bee, The Miami Herald and The Star-Telegram of Fort Worth.

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