From: Doug Ray
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In fact, the traditional display and classified advertising categories have fallen this year to levels not seen since our most difficult recessionary cycle. In past cyclical downturns, we have weathered the storm with temporary measures that reduced expenses, awaiting a return of business in the wake of economic recovery.
This situation is different and requires short-term expense reduction initiatives as well as long-term structural adjustments in the way we do business, which will position the company for the future.
§ Also effective in Period Nine, salaries will be reduced by five percent. Every employee will incur the reduction in pay. We expect the five percent to be reinstated early next year. Every employee will receive an additional week of paid vacation to be taken in the second half of 2008, to somewhat soften the impact of the salary reduction.
In order to meet this challenge, all of our competitors and most newspapers across the country have reduced staff. We must do so now as well. Because revenue is falling and is expected to continue with the structural changes in our business model, we no longer can avoid staff reductions. I have directed the senior management team to develop strategies to permanently reduce payroll expense.
