June 16, 2008
Dear Star employees:
I am writing today to tell you that The Kansas City Star is reducing our workforce by about 120 positions, or about 10% of our total staff.
This is a painful but necessary step. We are operating in a time of great change for our operations, for The McClatchy Company and for the newspaper industry overall. Increased competition and a pronounced economic downturn have combined to reduce revenues dramatically. These cuts are part of the way we must respond as we strategically realign our company for success in this digital age.
As you know, we already have been transitioning to new ways of doing business, and we are now accelerating that effort. However, we are confident in our ability to navigate to a stable and prosperous future as an integrated media company. We remain - and will continue to be - our community's preeminent and most trusted supplier of news and advertising information, in both print and online.
Reductions will occur in every division. Although many of these job eliminations will occur through involuntary layoffs, there also will be opportunities for employees to voluntarily elect a severance package where reductions are occurring in work groups of two or more employees. If enough employees do not take the voluntary option, then the work groups will be reduced according to least tenure.
Employees affected by this reduction are being notified as quickly as possible and are being provided with information about the severance program and their last day of employment. They will be provided with a transition package that includes severance pay and subsidized benefits continuation. We also will provide outplacement services.
As a news company, we have often reported on such transitions in other industries. Now we face the painful reality of severing employment ties with valued friends and colleagues, many of whom have served the company well for many years. We are sorry to do so, and will do everything possible to make their transition as smooth as possible.
Other workforce reductions were also announced today throughout McClatchy. A press release detailing those actions - amounting to about 1,400 jobs, or 10% of the company's workforce - is available at www.mcclatchy.com. As CEO Gary Pruitt says there, "McClatchy is committed to remaining a healthy, profitable company positioned not only to meet current challenges, but to take full advantage of opportunities for growth as we restructure to support our mission of delivering high quality news and information."
As we restructure for the future, we continue to look for ways to run more efficiently throughout our organization. As part of this examination, we have decided to trim back circulation deliveries to our most far-flung locations, eliminating a net of about 5,000 daily copies in those remote areas. However, it's also important to note that our combined print-online readership continues to grow at record levels. We now reach nearly 4 million readers a month in print and online - the most in Star history.
We realize that with all these changes, this can be a difficult and disorienting time for those of us who remain on the job. Your continued effort and dedication are the foundation of our faith in the future, and we know from experience what a talented and productive group you are. The public service mission that has always inspired us remains unchanged, even as we work through these challenges and adapt to today's far more competitive media landscape. I will be working diligently alongside you to ensure that The Star's future remains bright.
If you have any questions about the transition program please contact Chris, Randy or Peggy in Human Resources. If you have any questions about departmental or structural changes, please contact your department manager. And if you receive any inquiries from the press or outside media, please direct them to me.
Thank you again for everything you are doing on behalf of The Star.
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