DOW JONES NEWSWIRES
A.H. Belo Corp. (AHC) said Thursday it will cut pay and benefits
in an attempt to save at least $10 million a year, furthering the
newspaper publisher's cost-cutting initiatives amid a prolonged
advertising slump.
"Identifying additional opportunities to manage cash remains our
first priority," Chairman and Chief Executive Robert W. Decherd
said.
The latest cuts follow a 14% work force reduction announced in
February. Newspaper companies have been taking drastic steps to
stay afloat, with several filing for bankruptcy protection in
recent months and others beginning to abandon the printed page for
the Internet.
The Dallas Morning News publisher, spun off last year from Belo
Corp. (BLC), plans to reduce salaries starting around May 1 for
employees that make more than $25,000 a year, starting at a 2.5%
cut and rising to 15% for those with salaries above $225,000 a
year. Unionized workers will be asked to take voluntary pay cuts at
the same levels.
Decherd agreed to take a 20% pay cut, while other management
committee members will see a 15% reduction. A.H. Belo also will
reduce severance benefits for any job reductions after June 30.
Other major newspaper companies that have announced pay cuts
recently include New York Times Co. (NYT) and McClatchy Co. (MNI),
while Tribune Co. (TRBCQ) and Sun-Times Media Group Inc. (SUTM)
have sought bankruptcy protection.
Shares of A.H. Belo, which owns four newspapers and numerous Web
sites, closed at $1.15 on Wednesday and didn't trade
pre-market.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com
