Media General to Cut 750 Jobs, Reports Very Bad April Revenue

By: E&P Staff Media General reported weak April newspaper financial results Thursday, largely on plunging revenues in Tampa and its other two metro markets -- which drove help-wanted classified revenues down 42% and real estate down 40%.

Overall revenue at the Richmond, Va.-based publisher and broadcaster fell 10.9% to $78.7 million in April.

The Associated Press now reports that Media General says it will cut 750 jobs by the beginning of the third quarter to reduce operating costs. "The Richmond company says the reductions by October are in response to an overall slowing of the U.S. economy and a deepening recession in Florida, where it has numerous operations including The Tampa Tribune.

"The cuts will result in an annualized cost savings of $40 million. Media General says it expects to expense severance costs of $4 million to $4.5 million in the second quarter of 2008."

Staff reductions are spread across the company's publishing, broadcast and corporate operations. The company did increase positions in its interactive media division.

Newspaper and publishing revenues fell 14.3% in the month, pushed down by results from the Tampa Tribune, where revenues plunged 27%.

Media General noted that revenue at its other markets fell less precipitously, with Virginia down 9.9%; North Carolina decreasing 7.6%; and Alabama down 2.1%.

Revenues rose 3.7% in South Carolina, mostly from a new weekly paper in the Florence/Myrtle Beach market, Media General said.

Classified ad revenue plunged 29%, mostly on the Tampa results. Automotive classified fell 38% in its three metro markets.

Retail advertising revenue declined $1.2 million, or 5.5%, with weakness in Tampa offsetting what Media General said was a "nominal" increase in Richmond.

"The Publishing Division's April results reflected the continued deep recession in Florida, which impacted all major advertising categories at our Tampa operations, particularly classified advertising," Media General President and CEO Marshall N. Morton said in a statement.

Interactive local ad spending was up 42% for the month, Morton said, noting that online classified revenue declined in April.

Media General offered an extensive buyout program to Tampa-area employees earlier this year, and Morton said the company will shed a net 750 full-time equivalent positions by the third quarter.

Of those job cuts, 745 are expected to come from newspapers and other publications, 45 from broadcast, and 20 from corporate staff departments. The company will increase jobs at its Interactive Media division by 60, Morton said.