UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of
1934
Date of
Report (Date of earliest event reported): September 16, 2008
(Exact
name of registrant as specified in its charter)
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DELAWARE
(State
or other jurisdiction of
incorporation
or organization)
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1-9824
(Commission
File
Number)
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52-2080478
(I.R.S.
Employer
Identification
No.)
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2100
Q Street
Sacramento,
CA 95816
(Address
of principal executive offices, zip code)
Registrant’s
telephone number, including area code (916) 321-1846
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
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Written
communications pursuant to Rule 425 under the Securities Act (l7 CFR
230.425)
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (l7 CFR
240-14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (l7 CFR
240.13e-4(c))
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Item
2.05. Costs Associated with Exit or Disposal
Activities.
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(b)
The McClatchy Company (the “Company”) has determined to reduce its
workforce by about 10% as the company streamlines its operations and staff
size. The Company announced the workforce reductions on
September 16, 2008. The announced workforce reduction will come
through both voluntary and involuntary separations and managed attrition
involving about 1,150 positions. The Company will retain its strategic
focus on sales, news and online operations as it realigns operations, with
decisions about the size and profile of changes differing by newspaper
operation.
The
Company expects the announced workforce reduction to result in severance
costs of approximately $20 million in the third quarter of 2008 and to
produce annual savings of approximately $59 million.
On
September 16, 2008, the Company issued a press release announcing the
workforce reduction along with its third quarter 2008
dividend. The press release is attached hereto as Exhibit 99.1
and information from the press release is hereby incorporated by
reference.
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Safe
Harbor Statement
This
report contains forward-looking statements, including those regarding the
expected charges and future cash expenditures under, and anticipated
timing of, the Plan. All forward-looking statements are based on
management’s estimates, projections and assumptions as of the date hereof
and include the assumptions that underlie such statements. These
statements are subject to known and unknown risks and uncertainties that
could cause actual results to differ materially from those expressed or
implied by such statements, including but not limited to revenues,
anticipated savings from cost reduction efforts, cash flows, debt levels,
as well as future opportunities for the company and any other statements
about management’s future expectations, beliefs, goals, plans or prospects
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Any statements that
are not statements of historical fact (including statements containing the
words “believes,” “plans,” “anticipates,” “expects,” estimates and similar
expressions) should also be considered to be forward-looking
statements. There are a number of important risks and
uncertainties that could cause actual results or events to differ
materially from those indicated by such forward-looking statements,
including: the duration and depth of an economic recession in
markets where McClatchy operates its newspapers may reduce its income and
cash flow greater than expected; McClatchy may not consummate contemplated
transactions which may enable debt reduction on anticipated terms or at
all; McClatchy may not achieve its expense reduction targets or may do
harm to its operations in attempting to achieve such targets; McClatchy’s
operations have been, and will likely continue to be, adversely affected
by competition, including competition from internet publishing and
advertising platforms; McClatchy’s expense and income levels could be
adversely affected by changes in the cost of newsprint and McClatchy’s
operations could be negatively affected by any deterioration in its labor
relations; and other risks described in the Company’s SEC filings. The
Company undertakes no obligation to revise or update any forward-looking
statements.
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Item
9.01.
(d) Exhibits
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Financial
Statements and Exhibits.
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The following exhibit is filed as
part of this Current Report on Form 8-K.
Exhibit
No. Description
99.1 Press
release issued by The McClatchy Company dated September 16,
2008.
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
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September
17, 2008
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The
McClatchy Company
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/s/
Patrick J. Talamantes
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Patrick
J. Talamantes
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Vice
President and Chief Financial
Officer
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