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PHILADELPHIA (AFX) - Citing the effects of a sluggish local economy, newspaper publisher Journal Register Co. said Wednesday it is cutting 82 jobs in Michigan.
The jobs cuts represent 6.5 percent of the work force in the company's Michigan cluster and will be mainly in production, distribution and administration. The Yardley, Pa.-based company said the move would save more than $3.2 million a year.
Journal Register owns about 67 newspapers and other publications in Michigan, including The Oakland Press, The News-Herald in Southgate and The Macomb Daily. The 67 papers have a combined weekday circulation of nearly 350,000 and a Sunday circulation of more than 1.15 million, according to the company's Web site.
The publisher also said it won't give any raises next year to Michigan employees and senior management at corporate offices. Moreover, the Journal Register will be seeking a moratorium on wage increases for 2007 in upcoming union negotiations for the Michigan cluster.
The company also said it expects to cut costs through efficiences achieved with the opening of a new production facility in Mount Clemens, Mich., in the third quarter of 2007.
Journal Register officials did not immediately return calls for comment.
Robert M. Jelenic, chairman and chief executive, said in a statement that Michigan has been affected by a slowdown in the auto industry, a slump in tourism, slowing real estate sales and high unemployment.
The layoffs should be completed in two weeks. Charges related to severance will be recorded as an operating expense in the fourth quarter.
The publisher owns 27 daily newspapers and 366 non-daily publications. Last month, Journal Register put 26 Massachusetts and Rhode Island publications on the block. Copyright 2006 Associated Press. All rights reserved. This material may not be
Copyright 2006 AFX News Limited. All Rights Reserved.
