The other shoe dropped at the Sacramento Bee’s owner McClatchy on Monday: It will cut 1,600 jobs, or 15 percent of its workforce.
The Bee, McClatchy’s flagship paper, said it is cutting 138 jobs, or 11 percent of its workforce. Other newspapers in the chain will make their own decisions.
The cuts will come at the end of the first quarter. The severance payments will total $30 million.
“The effects of the current national economic downturn make it essential that we move even faster to realign our workforce and make our operations more efficient,” said chief executive Gary Pruitt.
Pruitt will take a 15 percent pay cut and other executives will take a 10 percent cut.
A growing chorus of Wall Street analysts have called for Pruitt’s ouster, citing McClatchy’s ill-timed buyout of Knight Ridder’s newspaper chain. The debt from the deal has added pressure to McClatchy, whose stock is trading at less than $1 per share.