Richmond, Va. – Media General, Inc. (NYSE: MEG) announced that it is implementing an employee furlough program in the face of an economy that continues to contract, causing the advertising market to further weaken.
Note: Media General owns WBTW News 13, The Morning News, The Hartsville Messenger, The Lake City News & Post, The Marion Star & Mullins Enterprise and The Hemingway Observer.
Employees will take a mandatory 10 days off according to a schedule that requires four days by the end of March and three days each in the Company’s next two fiscal quarters, ending in June and September, respectively. Unionized and other employees under contract are being asked to participate in lieu of layoffs.
“The current economic outlook requires us to be even more cautious than we already have been regarding our revenue expectations,” said Marshall N. Morton, president and chief executive officer. “Despite aggressive sales initiatives and significant cost reductions already implemented, we need to build in additional expense savings to offset the revenue shortfalls we anticipate.
“With this furlough, along with other cost reduction measures already implemented, we are being prudent and proactive as we address the impact of unprecedented economic turmoil in our country and our industry,” said Mr. Morton.
In January, Media General announced that it is suspending the company’s matching contribution on its 401(k) plan effective April 1, 2009, through the end of the year, and the Board of Directors suspended the dividend on its common stock. These actions, together with the furlough, will provide an additional $28 million in 2009 for debt reduction.
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