FOR IMMEDIATE RELEASE
Thursday, September 4, 2008 4:00 P.M. CDT
VOLUNTARY SEVERANCE PROGRAM IS COMPLETED
DALLAS – A. H. Belo Corporation (NYSE: AHC) said today that the voluntary severance offer (VSO) extended to the Company’s newspaper employees in July has been completed. Overall, 413 employees will leave the company under the VSO – 270 at The Dallas Morning News, 23 at The Providence Journal, and 120 at The Press-Enterprise. The total cost of the VSO is approximately $11.2 million, the majority of which will be expensed in the third quarter.
In addition, an involuntary reduction in force will be completed by mid-to-late October to achieve the necessary remaining workforce reductions. The expense related to the reduction in force is estimated at $2.4 million and will be recorded in the fourth quarter. The reduction in force is limited to the news, production, customer retention call center, and Al Día departments at The Dallas Morning News; the news, consumer sales, packaging and production departments (excluding pressroom) at The Press-Enterprise; and, the news, editorial, advertising and promotion departments, subject to contractual obligations, at The Providence Journal.
The combined workforce reductions are expected to result in a savings of more than $29 million on an annualized basis.
Robert W. Decherd, chairman, president and Chief Executive Officer, said, “These job actions are part of a restructuring of our newspaper operations that accelerates the allocation of resources to promising new print and online products while focusing our workforce on A. H. Belo’s local content creation and sales capabilities. We greatly appreciate the dedication and service of all A. H. Belo employees who are leaving the Company under the voluntary severance program. I’m confident that we’re taking the right steps to realign our resources to meet consumer and advertiser needs while maintaining the exceptional quality of A. H. Belo’s journalistic products.”
A copy of the letter sent to operating company employees today by Jim Moroney, executive vice president of A. H. Belo and Publisher and Chief Executive Officer of The Dallas Morning News is available at www.ahbelo.com/invest.
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