Last-ditch measure to save Chronicle

Source: Agencies | February 26, 2009, Thursday |

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THE San Francisco Chronicle joined the lengthening list of imperiled newspapers on Tuesday as its owner set out to purge the payroll and slash other expenses in a last-ditch effort to reverse years of heavy losses.

If it can't reduce expenses dramatically within the next few weeks, the Hearst Corp said it will close or sell the Chronicle, northern California's largest newspaper with a paid weekday circulation of 339,430.

Hearst didn't specify a savings target nor a deadline for wringing out the expenses. But management made it clear that the cost-cutting will require massive layoffs.

"Our current situation dictates that we accomplish these cost savings quickly," Chronicle Publisher Frank Vega wrote in a memo to the staff. "Business as usual is no longer an option."

The Chronicle has given Hearst financial headaches since the New York-based company bought the newspaper in a complex deal valued at US$660 million. The late 2000 acquisition proved to be ill-timed. Shortly after Hearst took control, the San Francisco Chronicle was hard hit by a high-tech bust that caused its advertising revenue to shrivel.

Also on Tuesday, the chief executive of Philadelphia's largest two daily newspapers pledged to roll back a US$232,000 raise while his company tries to reorganize in bankruptcy court.

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Last-ditch measure to save Chronicle

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