The Wall Street Journal-20080214-Tribune Plans to Cut Jobs As Ad Woes Continue

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Tribune Plans to Cut Jobs As Ad Woes Continue

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Tribune Co. plans to cut between 2% and 2.5% of its work force, or about 400 to 500 jobs, according to a person familiar with the situation, in what Tribune Chairman Sam Zell said was a response to a weak economy and deteriorating newspaper industry.

Mr. Zell wrote to workers in a memo yesterday that Tribune had to take "immediate action."

He noted that falling newspaper advertising revenue was hurting the company's cash flow. Tribune has about 20,000 employees. The cuts come two months after Mr. Zell got effective control of Tribune in an $8.2 billion buyout that left the company with debt of about $13 billion.

Mr. Zell said in the memo that he doesn't believe Tribune can improve its business by slicing away at expenses. "This is not my ultimate strategy for our company," he wrote.

The cuts will come through buyouts, layoffs, attrition and the closing of some open jobs, Mr. Zell said in the memo.

The Los Angeles Times will eliminate 100 to 150 positions, a spokeswoman confirmed after an article about the cuts ran on the paper's Web site.

The Chicago Tribune will lose about 100 jobs, according to an article on its Web site.

Newsday, which covers Long Island, N.Y., doesn't yet know the scope of the reductions or other changes it will make, Publisher Tim Knight wrote in a memo to employees yesterday.

The Sun in Baltimore will offer buyouts for about 45 jobs, according to a memo reviewed by The Wall Street Journal.