The News & Observer will eliminate about 20 jobs in the latest cost-cutting effort by the Raleigh-based media company.
The staff reductions announced today will affect most areas of the company, including the newsroom. Some employees will have the opportunity to accept voluntary severance packages, but a few positions will be eliminated through layoffs.
The newspaper publisher continues to see declines in print advertising revenue, mirroring similar trends nationwide. Online ad revenue is increasing, but is still a smaller part of the total.
"Although our declines are not as steep as they have been in previous years, revenue trends remain negative year-over-year," publisher Orage Quarles III wrote in a memo to employees this morning. "As a result, we must continue to look for ways to offset this trend by managing expenses.
"We understand how difficult this message is to receive given other reduction programs we have done over the last few years," he wrote. "However, we are working hard to implement new products and improve our revenue performance to help us navigate through these difficult times."
The latest staff cuts follow last week's weaker quarterly earnings from the parent corporation of the N&O, The McClatchy Co.
Total revenue for the first quarter was $303.7 million, less than analysts had expected and down 9.5 percent from the same period a year earlier. Ad revenue was off 11 percent.
Despite steady improvement in the broader economy, many recession-weary advertisers aren't ready to resume buying ads, especially in traditional newspapers.
The Sacramento, Calif.-based company publishes 30 daily newspapers nationwide, including the Miami Herald and Charlotte Observer, as well as dozens of weeklies and other publications. Other papers in the chain also continue to reduce their workforces to match revenue declines.
Others announcing job cuts this week include the Miami Herald and Kansas City Star.
On a conference call with Wall Street analysts last week, CEO Gary Pruitt noted that "every McClatchy newspaper is profitable."