AH Belo To Cut Salaries, Benefits; Sees $10 Million In Savings A Year

   DOW JONES NEWSWIRES 
 

A.H. Belo Corp. (AHC) said Thursday it will cut pay and benefits in an attempt to save at least $10 million a year, furthering the newspaper publisher's cost-cutting initiatives amid a prolonged advertising slump.

"Identifying additional opportunities to manage cash remains our first priority," Chairman and Chief Executive Robert W. Decherd said.

The latest cuts follow a 14% work force reduction announced in February. Newspaper companies have been taking drastic steps to stay afloat, with several filing for bankruptcy protection in recent months and others beginning to abandon the printed page for the Internet.

The Dallas Morning News publisher, spun off last year from Belo Corp. (BLC), plans to reduce salaries starting around May 1 for employees that make more than $25,000 a year, starting at a 2.5% cut and rising to 15% for those with salaries above $225,000 a year. Unionized workers will be asked to take voluntary pay cuts at the same levels.

Decherd agreed to take a 20% pay cut, while other management committee members will see a 15% reduction. A.H. Belo also will reduce severance benefits for any job reductions after June 30.

Other major newspaper companies that have announced pay cuts recently include New York Times Co. (NYT) and McClatchy Co. (MNI), while Tribune Co. (TRBCQ) and Sun-Times Media Group Inc. (SUTM) have sought bankruptcy protection.

Shares of A.H. Belo, which owns four newspapers and numerous Web sites, closed at $1.15 on Wednesday and didn't trade pre-market.

-By Tess Stynes, Dow Jones Newswires; 201-938-2473; [e-mail]