Anyone would understand the need for cutbacks in a company losing money. But that isn't the case. Knight Ridder, like other major newspaper chains, has been making dough like a baker. The Herald last year showed an operating profit margin of 22 percent. In the age of public ownership, good isn't necessarily good enough.
Newspapers have no special dispensation from economic downturns.
Indeed, they are among the first to feel the effects of an imminent slowdown, as advertising and employment classified ads are among the first thing bearish companies will trim. Lee Ann Schlatter, Knight Ridder director of corporate communications, told me. These are the moments when one might miss the storied families that once controlled America's newspapers. They were much better positioned to endure fluctuating earnings without feeling compelled to cut staff. I'd think the markets would be more concerned that Knight Ridder's long-term prospects could be hurt by urging the departure of experienced staffers.