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Media General Cost-Reduction Plan Includes Cutting 11% Of Work Force

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The Associated Press

Published: May 23, 2008

RICHMOND, Va. - Media General Inc., the parent company of The Tampa Tribune, said Thursday that it will have cut its work force by nearly 11 percent by the third quarter to reduce operating costs.

The 750 job cuts are paired with other operating cost reductions, as the company faces a slumping U.S. economy and a recession in Florida, where it also owns WFLA, News Channel 8 and TBO.com, among other operations.

"Media General continues to implement its announced performance improvement initiatives across all parts of the company," said Marshall N. Morton, the company's president and chief executive officer. "Our efforts to reduce operating costs have necessarily included personnel."

The company, which also publishes the Richmond Times-Dispatch, said it expects annual savings of $40 million from the job cuts, which began in early 2007 and will be fully realized next year. Media General said it will post severance charges of between $4 million and $4.5 million in the second quarter.

Staff reductions, which will decrease the number of employees to 6,150, are spread across publishing, broadcast and corporate operations, the company said in a statement Thursday.

The company, however, is adding positions in its Interactive Media Division as it focuses on the Internet.

Ray Kozakewicz, manager of corporate communications for Media General, said that all told, the company is cutting 810 positions, but plans to add 60 positions in its Interactive Media Division, giving it a net reduction of 750 positions.

The company said in a statement Thursday that 745 of the job reductions will come in the publishing division, 45 in broadcast and 20 in corporate units.

Kozakewicz said that about 250 of the job cuts took place in 2007. The remaining job cuts will come from attrition, buyouts and layoffs, he said.

The Florida Communications Group, which oversees the Tampa operations of Media General, has offered buyouts to many workers.

Shares of Media General rose Thursday $1.59 to close at $16.40.

Tribune staff reporter Michael Sasso contributed to this report.

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