Newspaper publisher McClatchy cuts 1,600 jobs as it fights declining revenue, bad economy

Newspaper publisher McClatchy Co. said Monday that it will shrink its work force by another 15% as it contends with sharply declining revenue amid a deepening recession. The 1,600 job reductions should help the publisher of The Miami Herald, The Sacramento Bee & other newspapers meet previously announced plans to save up to $110M over the next year. McClatchy Treasurer Elaine Lintecum said the company will likely exceed that target, but it didn't release a new estimate. "The effects of the current national economic downturn make it essential that we move even faster to realign our work force and make our operations more efficient," Chairman & CEO Gary Pruitt said in a statement. Pruitt will take a 15% cut in his base salary, while other executives will see their pay reduced by 10%. Pruitt got a $1.1M salary in 2007, the last year for which McClatchy's disclosed his pay. Cash compensation to the company's directors will decline about 13%. Senior execs are also forgoing bonuses in 2008 & 2009, while directors are declining stock awards. Other wage cuts are planned, but the company did not provide details. Shares in McClatchy fell 15