McClatchy cuts costs, asks bankruptcy court for changes

McClatchy has announced “highly targeted” cost-cutting steps, among them 90-day leaves for a number of advertising employees and cuts in executive pay, McClatchy’s Washington bureau reported.

The cuts impacted upwards of 4% of McClatchy’s 2,770-member staff. No journalists were affected, McClatchy reported.

The company also asked the federal bankruptcy court in New York to lower its legal fees and scheduled payments to creditors. 

The company filed Chapter 11 bankruptcy in February.

The company is also laying off four executives, said a letter to employees, the Sacramento Business Journal reported. 

CEO Craig Forman said in the letter that he’ll see a 50% pay cut and five other McClatchy executives will see cuts of 15%.

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