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RALEIGH, N.C. The News & Observer Publishing Co. says it will reduce pay for many employees, require furloughs and eliminate 11 percent of its work force, including 27 newsroom positions at its flagship newspaper in Raleigh.

The media company is a subsidiary of the McClatchy Co. and owns publications such as The Cary News and The Herald in Smithfield.

In a story posted Monday on the Web site of The News & Observer, the company said declining advertising revenue led to the decision, which is in line with those of other McClatchy publications.

The layoffs amount to 78 positions. Remaining employees will have to take a week off without pay.

The News & Observer also reported salaries will be cut up to 10 percent. People making less than $25,000 won't see a cut.