Belo cutting 150 employees
Also will reduce some salaries by 5%DALLAS -- Television company Belo Corp. said Wednesday that it plans to cut 150 jobs, reduce some employee salaries by 5% and suspend its 401(k) matching contributions to help reduce cash operating expenses by about 10% this year.
The 5% salary reduction will affect employees who are part of the Dallas-based company's management-compensation programs. The suspension of the 401(k) matching program, however, will apply to all employees.
Belo, which owns 20 television stations, said the cost-cutting measures will take effect in mid-April.
President and CEO Dunia Shive said the new steps and past cost-cutting initiatives will reduce 2009 cash operating expenses by about 10%, excluding severance costs.
Belo's revenue fell more than 5% in 2008 as increased political advertising and higher retransmission and Internet revenue failed to offset overall advertising declines.
In response, the company initiated a hiring freeze, reduced staff in some markets and took other cost-cutting steps last year.
Last week, Belo said it will indefinitely suspend its dividends after the second quarter to focus on paying down debt and conserving cash. Belo's second-quarter dividend of 7.5 cents will be paid on June 5.
Belo shares fell 18 cents, or 21%, to 69 cents in morning trading.