A.H. Belo Cuts Again as Industry Bleeds Out

Updated from 4 p.m. EST

Dallas Morning News owner A.H. Belo (AHC Quote) announced job cuts for the second time in less than a year Friday, saying it will lay off 500 workers, or about 14% of its work force, to cope with declining revenue.

CEO Robert Decherd said details of the layoffs -- which will affect all operating units and corporate headquarters of Dallas-based A.H. Belo -- would be available by mid-February.

The company also is reportedly suspending its 401(k) matching policy, which Decherd said would save about $5.5 million per year. Other cost-cutting measures include reducing reimbursements for mobile phone service and requiring some employees in downtown Dallas to pay to park on company-owned lots.

According to The Dallas Morning News, Belo is calling again upon consulting firm Bain & Co. to help it get through the economic downturn. The company did not disclose how much it will pay Bain.

"The key for all companies, and certainly A. H. Belo, is to generate and preserve cash," Decherd said.

A.H. Belo also owns The Providence Journal in Rhode Island, The Press-Enterprise in Riverside, Calif., and The Denton Record-Chronicle in Texas.

This is the second round of layoffs for the company in less than a year. In September, A.H. Belo announced that its voluntary severance program fell shy of its target and that the resulting layoffs required would be complete by mid-October. The target for staff reduction then also was 500 employees. The Press-Enterprise cut 30 employees, and the Morning News reportedly lost 20 staffers from its newsroom.