The News & Observer Publishing Co. plans to eliminate about 20 positions, the latest cuts as the media company rides out a sharp decline in revenue.
The Raleigh-based parent of the N&O has laid off hundreds of workers and trimmed its size during the past two years. The moves mirror similar steps at most other media companies, including local broadcasters, which were hit by the recession and weak advertising.
The N&O continues to see "softness" in its three major sources of classified ad revenue: housing, automobiles and employment, said publisher Orage Quarles III, who oversees the flagship newspaper, newsobserver.com and community papers including The Cary News and The Chapel Hill News.
"Probably six months out we'll start seeing a rebound," he said. "Our losses have definitely slowed, but we still have losses. I'm just trying to be prudent as we head into a new year."
Other sources of revenue, including national retail advertising, have picked up in recent months. "That's a good sign," Quarles added. "But the local categories are still very soft."
The newspaper has no plans to cut additional pages. The N&O and its sister newspaper The Charlotte Observer today started a two-page science and technology section that will run every Monday.
Affected employees will be provided severance payments and other transition assistance. The N&O now has 524 full-time positions, down from 704 a year ago. The newspaper last year also cut wages, suspended contributions to retirement plans and required unpaid furloughs for its staff.
Quarles said it's too soon to say whether there could be more cuts this year, a decision that will hinge mostly on how much ad sales rebound.
The N&O is owned by Sacramento, Calif.-based The McClatchy Co., which also has been cutting costs and jobs to offset slumping revenue. The company is struggling to repay nearly $2 billion in debt incurred when it bought the Knight Ridder chain, giving it 30 daily newspapers and 50 non-dailies across the country.
But there are signs the worst of the downturn may be over. When it announces its latest earnings next week, McClatchy is expected to report that fourth-quarter revenue fell by a percentage in the low-to-mid-20s, compared with a 28 percent drop in the third quarter.
McClatchy's stock has risen more than 10-fold since July as investors become more optimistic about the future. The shares rose 25 cents to close at $5.14 today.
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or 
Comments
Great business
Fri, 11/12/2010 - 05:01 — webdesignThis is great to hear about the business. SAD that jobs are being cut when people are unemployed.
Regards
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Paper subscriptions = online subscriptions
Wed, 01/27/2010 - 19:03 — RonBOr online-only subscriptions for less due to the saved costs of paper, printing, and delivery.
Cutting staff while making profits shows McClatchy is putting profits above journalism, nothing more, nothing less.
"Conservatives" expect schools, police departments, etc. for free, since they shouldn't have to pay taxes. They are stuck on the idea that the "free market" will solve all their problems. Meanwhile, time and again, the unregulated markets have shown they only redistribute wealth to the cheaters who are already wealthy.
Anyone who says otherwise is burned at the Fox News stake as a "tax and spend liburul" witch.
N&O Publishing Co. to cut 20 additional jobs
Tue, 01/12/2010 - 01:46 — igliigliThe N&O continues to print sports instead of real news. No wonder they continue to lose readers.
"require a subscription fee
Mon, 01/11/2010 - 20:17 — AgentPierce"require a subscription fee to participate in interactive features, such as commenting on articles.".....
Here's why that would never work lise. (1) I will never give another $1 to the N&O and neither will most Conserv who they insult thru both their news and op/ed depts,..... (2) you libs expect everything as a free entitlement from the government.
who does that leave ..... one grumpy hermit in Johnston County who hates everybody but likes the comics.
It is no surprise
Mon, 01/11/2010 - 20:06 — uBniceThe information age is upon us and the answer for news is the internet and TV. It just doesn't make sense to subscribe to a newspaper anymore. I get much of my news via the net and I pay little or no attention to the advertisement.
I am sorry to hear about your loss. I hope you can develop a successful model in this digital age. We need someone to keep check on the mafia we know as the NC government and right now, you are it!
N&O should charge for on-line access
Mon, 01/11/2010 - 19:59 — liselainePlease consider charging for access to content. I'd be amazed if on-line advertising paid for itself. If nothing else, require a subscription fee to participate in interactive features, such as commenting on articles.
Debt load
Mon, 01/11/2010 - 16:17 — countriboyTo what degree are the lay-offs related to McClatchy’s huge debt load? If the parent corporation hadn’t gone on a big buying spree just before the downtown, some of those hard-working employees might have been able to keep their jobs. It’s tough on moral to be wondering whose gonna get the ax. Having been in that position myself, I feel for these folks, who have bills to pay just like the rest of us.
The Hope & Change Express
Mon, 01/11/2010 - 15:42 — PhantomLordThe Hope & Change Express rolls on! Praise be to The Messiah Obama!
Let The People decide!
Mon, 01/11/2010 - 15:18 — AgentPierceIn true "democratic fashion" why not let "The People" decide who gets cut?
The N&O is always beating its drum that "the voice of The People must be heard" whether its school boards or whatever other agenda the paper endorses. Let's have an on-line poll of who should be let go? I have my three choices as soon as it's official to vote.