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The Markets March 12, 2009
Television Station Owner Trims 401(k) Match
Dallas-based television station owner Belo Corp. has suspended the company’s 401(k) match, trimmed some salaries, and cut its workforce because of the slumping economy.
Reported by Fred Schneyer
The company announced in a statement that the cost-cutting moves would be effective in mid April.
According to the firm, in addition to the match suspension, it was also:
- cutting managers’ salary by 5%
- carrying out a company-wide staff reduction of approximately 150 positions.
“As a result of these actions, and other measures previously implemented, we expect 2009 cash operating expenses to be approximately 10% lower than 2008, excluding severance costs,” said Dunia Shive, Belo’s president and CEO, in a statement.
Belo owns 20 television stations.
According to media reports of the announcement, 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 steps last year.