Sun-Times Plans More Cuts After $168M Loss

Crain's Chicago Business:

Sun-Times Media Group Inc. said it lost $168.8 million in its third quarter as revenue sank amid a weak economy.

Ad sales in Chicago dropped 19% in the quarter, and likely won't begin to increase again until 2010, CEO Cyrus Freidheim said in a letter to investors that was released along with its earnings report Thursday. The company plans to cut $45 million to $55 million in expenses over the next nine months to survive in the meantime.

Newspapers are struggling amid the worst advertising environment in years, and the operator of the Chicago Sun-Times and 70 other community newspapers is no exception. Its latest cost-cutting plan comes on top of a $50 million expense reduction that came in the first half of 2008. All told, the company will have trimmed its costs by 30% by the middle of next year, Mr. Freidheim wrote.

"In view of the worsening market conditions, the company is taking even more aggressive actions to reduce costs," he wrote. "Our organization understands the severity of the situation and the need for urgent action."

Read the whole story: Crain's Chicago Business

Comments

[TrooAmerican]

In view of the worsening market, we will continue to worsen the market with another round of layoffs, thereby putting more people out of work, and dropping local tax revenue and retail business again.

didnt they just get a HUGE boost in sales on wednesday?