CINCINNATI—Media company E.W. Scripps Co. will make widespread pay cuts and suspend some retirement benefits to control expenses, the company’s chief executive said in a memo to employees.
CEO Rich Boehne said in the Wednesday memo that the changes are needed to give the Cincinnati-based Scripps “the strength to weather the storm” in tough economic times.
“A comprehensive and wrenching process led us to these decisions, but we must act now to reduce costs and remain competitive,” Boehne said in the memo.
Company spokesman Tim King confirmed that the memo posted on the Web site of The Poynter Institute is authentic, but declined further comment on the cuts. He said the company’s plans would be discussed when it releases its fourth-quarter earnings report Thursday.
Boehne said in the memo that he and other senior managers took pay cuts in January of 5 to 15 percent, but that more cuts are necessary.
“You will be hearing shortly from your publisher how this will affect your newspaper,” he said.
He also said the company’s pension plan will be frozen and it will end matching contributions to employees’ 401(k) plans beginning with the first April paycheck.
Scripps’ pension plan will be frozen “at a date to be determined soon,” the memo said.
Other media companies also have been making cuts as the economy continues to take its toll. Workers at newspapers and broadcasters around the country are increasingly facing pay cuts, wage freezes and layoffs as advertising revenues drop.
The E. W. Scripps Co. has interests in newspaper publishing, broadcast television stations, and licensing and syndication.
Scripps operates daily and community newspapers in 15 markets, and 10 broadcast TV stations. Newspapers include the Rocky Mountain News in Denver, The Commercial Appeal in Memphis, The Knoxville (Tenn.) News Sentinel and the Ventura County (Calif.) Star. Scripps is trying to sell the Rocky Mountain News, which may close if a buyer can’t be found.
Scripps also operates Scripps Howard News Service and United Media, which is the worldwide licensing and syndication home of Peanuts, Dilbert and 150 other features and characters.
