By: Newspaper publisher Journal Register Co. said Wednesday it is cutting 82 jobs in the Michigan area in the next two weeks partially due to an auto industry slowdown.
The area has also been hit by a reduction in tourism, slowing real estate sales and the highest unemployment rate in the U.S.
The reductions are expected to provide annual savings of more than $3.2 million.
The cuts in production, distribution, and administrative areas affect about 6.5 percent of the company's Michigan cluster work force, Chairman and Chief Executive Robert M. Jelenic said in a statement.
The company also said that workers in the Michigan cluster and senior management in its corporate office will not receive wage increases next year, and it will seek a moratorium on raises for the year during union negotiations.
"We expect additional cost reductions from the synergies and efficiencies that will be realized with the opening of our new production facility in Mount Clemens, Mich., during the third quarter of 2007," Jelenic said.
The company does not anticipate further job cuts the rest of the year or next year.
Journal Register anticipates recording severance charges related to the job cuts as an operating expense in the fourth quarter.
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