July 14, 2006
Chicago Tribune to cut 4 percent of workforce
NEW YORK (Reuters) - The Chicago Tribune, owned by Tribune
Co., plans to eliminate about 120 jobs, or 4 percent of its
staff, as part of a plan to reduce costs, the newspaper's
publisher said in a memo to employees on Friday.
Eighty employees will lose their jobs, and 40 posts that
are currently unstaffed will be eliminated, publisher David
Hiller said in the memo obtained by Reuters.
"Most simply, our revenue is down and our costs are up, and
we have to address that," Hiller said in the memo, adding that
the newspaper planned to identify the positions and notify
employees before the Labor Day holiday in early September.
The jobs will come from across the company, a spokesman
The memo was sent after the news was first reported by
Chicago Tribune media columnist Phil Rosenthal in Friday's
The newspaper also is looking for additional savings in
newsprint and other areas, the memo said.
Tribune Co. on Thursday said its net income fell because of
a decline in newspaper advertising, falling daily paper
circulation, and a loss on its sale of two television stations.
Several other newspaper publishers, including Gannett Co.
Inc. and McClatchy Co., also reported lower earnings this week
as their print businesses lost national and automotive
advertising dollars and readers to the Internet.
Tribune Co. is in the midst of a program to cut about $200
million in costs and sell $500 million in assets. It also is
conducting a $2 billion program to buy back up to 25 percent of
its outstanding shares.
Its largest shareholder, the Chandler Trusts, opposes the
buyback and wants the company to spin off its broadcasting
division or find a buyer.
Tribune Co. also publishes the Los Angeles Times and the
Baltimore Sun. It owns 26 television stations and the Chicago
Its shares fell 35 cents, or 1.11 percent, to close at
$31.15 on the New York Stock Exchange.