Home › Business › Money & Markets
Scripps announces widespread pay cuts
Published February 18, 2009 at 2:54 p.m.
Rocky Mountain News parent company E.W. Scripps told its employees across the country Wednesday that it was instituting widespread pay cuts and the suspension of certain retirement benefits.
The changes do not apply to the Rocky, which Cincinnati- based Scripps is attempting to sell.
At the same time, The Denver Post laid off six members of its management staff Wednesday.
"I had hoped to avoid having to make any more personnel reductions, but that was impossible," Post Editor Greg Moore told employees in a memo obtained by the Rocky. "I think you all know the financial challenges facing this industry and this newspaper. Today's action should drive it all home for you."
When contacted, Moore declined to comment further.
Scripps CEO Rich Boehne said in an internal memo that Scripps' senior managers, from local managers to corporate executives, took pay cuts of 5 to 15 percent in January. "It is now clear that pay adjustments need to be broader," he said. "You will be hearing shortly from your publisher how this will affect your newspaper."
Scripps said it will end the company match to employees' 401(k) plan beginning with the first paycheck in April. Boehne said Scripps "hope(s) to reinstate it when business conditions improve."
Boehne also said the Scripps pension plan will be frozen "at a date to be determined soon." That means employees will no longer accrue service time or higher salaries for use in the calculation of their retirement payments.
Scripps spokesman Tim King declined to comment on the memo, saying the changes will be discussed today when the company releases its fourthquarter earnings.
"I know it's of little comfort as you read this letter today, but please believe me when I say there will be better days ahead," Boehne wrote to employees. "Our economy is busted at the moment and recovery won't come without pain, but the core value of the media business . . . has never been in greater demand."
The company owns 17 newspapers. It also owns 10 television stations in markets such as Phoenix, Detroit, Baltimore and Kansas City.
Back to Top