GateHouse Suspends 401-K Match

By: E&P Staff GateHouse Media has become the latest leading company to suspend 401-K matching for employees.

The Romenesko site at www.poynter.org today posted a memo sent to all employees from CEO Michael Reed on Wednesday. It reads as follows.
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Our nation is experiencing difficult economic times and 2008 was a very challenging year in terms of revenues for all media companies. While GateHouse performed better than most, we were not immune to the economic slowdown. In response to these pressures, GateHouse continues to look at all the options it has to help control costs and remain a competitive company in the event that the current slowdown worsens or lasts longer than expected.

The terms of the Company's 401(k) retirement savings plan allow for a discretionary employer matching contribution. In the past, this has allowed the Company to provide a meaningful employer matching contribution to employees who have contributed money from their paychecks to the Company's 401(k) retirement plan. The Company has determined to discontinue the discretionary employer matching contribution under the 401(k) plan effective January 1, 2009. The Company will revisit this issue and hopes to be able to provide this discretionary benefit under the 401(k) Plan at some time in the future. The plan will still remain available for employee contributions.

We look forward to working through a challenging 2009 and to coming out of this economic downturn a strong and viable company. We sincerely appreciate your efforts and contributions throughout 2008.