Stop the presses

25 August 2008 By Lauren Silva

Their revenues are plummeting. Tribune is selling assets to stay afloat. McClatchy is struggling. With top lines falling fast across the sector, publishers especially those of smaller papers that carry large amounts of debt look to be at serious risk.

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On June 16th, McClatchy announced a restructuring which included plans to cut its workforce by 10%.

We have been transitioning steadily and successfully from a traditional newspaper company to an integrated multimedia company for some time", said McClatchy chief executive Gary Pruitt. "The effects of the current national economic downturn particularly in real estate, auto and employment advertising make it essential that we move faster now to realign our workforce and make our operations more efficient. I'm sorry this requires the painful announcement we are making today, but we're taking this action to help ensure a healthy future for our company".

The New York Times said on August 26 that its revenue fell 10% in July to $235.9m from a year earlier. Advertising sales decreased 16% and circulation revenue dropped 0.5%.

Tribune is finishing up the sale of the Chicago Cubs, its local baseball team.

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