Knight Ridder to Layoff Workers at Most Newspapers

Posted on April 27, 2001

Knight Ridder, a leading newspaper publisher, announced a restructuring of its work force in response to both a recession in advertising revenue and a sharp increase in the price of newsprint. The company expects to layoff workers at most of its 32 newspapers.

``There will be reductions in most newspapers,'' Chairman and CEO Tony Ridder said. ``The number will vary according to local market conditions. We hope to achieve these reductions primarily through buyouts and early retirements. This is a difficult time in so many ways, but in no way greater than having to disrupt the lives and trust of Knight Ridder people with whom we have worked so closely. But I do feel we have no choice.''

Ridder noted that February advertising revenue was down 2.7% from the same period last year, March was down 6% and April's reduction appears even more substantial. At the same time, the cost of newsprint was up almost 20% in the quarter.

``I never have seen a fall-off as sudden or as steep as this one. I don't know anyone who is confident of a near-term, or a dramatic, uptick,'' Ridder said. ``The only responsible course is to tighten our operations, but with maximum sensitivity to assuring the quality of our journalism and the long-term health of our franchises so that we are better positioned to meet the future, whatever the economic environment.''

Knight Ridder is the nation's second-largest newspaper publisher, with products in print and online. The company publishes 32 daily newspapers in 28 U.S. markets, with a readership of 8.5 million daily and 12.6 million Sunday. The company's Internet operation, KnightRidder.com, creates and maintains a variety of online services, including Real Cities, a national network of city and regional destination sites in 40 U.S. markets. Knight Ridder and KnightRidder.com are located in San Jose, Calif.