Posted by chicagomedia.org on April 20, 2009 at 19:18:16:
Sun-Times lost 140 workers in latest layoffs
By: Ann Saphir
April 20, 2009
(Crain's) -- Sun-Times Media Group Inc. cut about 140 jobs companywide last week as it tries to trim costs during its bankruptcy reorganization.
The cuts, which affected both managers and non-managers, amounted to about 10% of the company's non-union staff, according to a Sun-Times spokeswoman. The company is in talks with representatives of its unions, including the Chicago Newspaper Guild, to win concessions from them, she said. About 928 of the company's 2,322 workers are union members, according to a Securities and Exchange Commission filing last week.
The cuts are "part of a companywide effort to reduce our compensation costs by 15%," she said. She would not name any of the workers who lost their jobs but did say that cuts affected all publications and all business units.
The parent of the Chicago Sun-Times sought protection from its creditors on March 31 after continued losses. It joins Tribune Co. as the second Chicago-area media company in Chapter 11 bankruptcy protection.
The media industry is reeling from declining ad revenue, and many publications have had to cut staff to offset losses. The Sun-Times suffered rounds of staff cuts last year, and Chicago Tribune staffers were told last week to brace for more layoffs.
Last week, Sun-Times Media Group reported it lost $353.5 million, or $4.31 a share, last year. Its revenue slipped to $323.9 million from $372.3 million in 2007. It has attempted to combat the falling revenue by trimming expenses through job and salary cuts, benefit reductions and furloughs.