TROUBLES: L.A. TIMES AD REVENUE ‘NEARLY ELIMINATED’… MCCLATCHY laying off execs

The Los Angeles Times announced on Tuesday that it will furlough some business-side employees and that senior managers will take pay cuts, as advertising revenue has been “nearly eliminated” due to the coronavirus pandemic.

The company will also suspend its 401(k) match for non-union workers, according to a company memo sent by Chris Argentieri, president of the California Times.

“Due to the unexpected effects of COVID-19, our advertising revenue has nearly been eliminated,” Argentieri wrote. “While we’ve made significant progress in growing our digital subscriber base and developing other sources of revenue, it is not yet enough to offset the losses. The economy is in crisis and it’s become clear that we need to make some difficult changes in order to meet this challenge.”

variety.com/2020/biz/news/los-angeles-times-furlough-ad-revenue-eliminated-1234580425/

The publisher of The Fresno Bee is furloughing 115 employees in its advertising departments in 30 newspapers across the country, according to a report by The Sacramento Business Journal.

A McClatchy spokesperson confirmed to the paper that though no newsroom positions would be furloughed, four McClatchy executives are being laid off, and its CEO would take a 50% pay cut. An additional five other members of McClatchy’s executive team will take cuts of 15%.

Nearly all the furloughs would be in advertising departments, reported The Sacramento Business Journal. About 4% of the workforce would take a “COVID-19 leave” for 90 days, according to the paper, but Sacramento-based McClatchy would “work hard” to rehire those employees when advertising rebounds.

thebusinessjournal.com/report-mcclatchy-laying-off-executives-furloughing-sales-employees/