PUBLISHING: Philadelphia newspapers warn of layoff worries

PUBLISHING: Philadelphia newspapers warn of layoff worries

10/21/2006

The new publisher of The Philadelphia Inquirer and the Philadelphia Daily News told employees Friday that layoffs are "unavoidable" because advertising revenue is down and the owners need to cut costs to meet their bank obligations.

"We must reduce our work force so that it is in line with our reduced revenue," wrote Brian P. Tierney, chairman and chief executive of Philadelphia Media Holdings LLC. "To the extent we don't get the savings, those layoffs will be larger."

Philadelphia Media Holdings — an investment group made up of Tierney, luxury house builder co-founder Bruce Toll and other local investors — bought the two dailies, their website and sister properties from McClatchy Co. in June in a deal valued at $562 million.

COMPILED FROM ASSOCIATED PRESS, BLOOMBERG NEWS AND POST-DISPATCH REPORTS