Media General Inc. said Wednesday that it plans to furlough employees in the face of an economy that continues to contract, causing the advertising market to further weaken.
Employees will take a mandatory 10 days off without pay according to a schedule that requires four days by the end of March and three days each in the company’s next two fiscal quarters, ending in June and September, respectively.
The Richmond-based company owns The Daily Progress, Waynesboro News-Virginian, Richmond Times-Dispatch and other newspapers and television stations.
The Daily Progress offices on West Rio Road will be closed on four Mondays in March, three Mondays in May and three Mondays in July.
The paper will continue to be produced and delivered each morning without interruption.
“The current economic outlook requires us to be even more cautious than we already have been regarding our revenue expectations,” said Marshall N. Morton, president and chief executive officer. “Despite aggressive sales initiatives and significant cost reductions already implemented, we need to build in additional expense savings to offset the revenue shortfalls we anticipate.”
In January, Media General announced that it would suspend the company’s matching contribution on its 401(k) plan effective April 1 through the end of the year, and the Board of Directors suspended the dividend on its common stock. These actions, together with the furlough, will provide an additional $28 million in 2009 for debt reduction.
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