Staffing and benefit cuts continue at Lee Enterprises

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Davenport-based newspaper publisher Lee Enterprises Inc. filed its annual report with the Securities and Exchange Commission on Dec. 11. Continuing declines in advertising and circulation revenues have led to an array of cuts in employment and benefits. Among the details:

• The company reduced operating expenses by $150 million, or 18.3 percent, in its 2009 fiscal year, which ended Sept. 27.

• Reductions in staffing resulted in workforce adjustment costs totaling $5.8 million in fiscal 2009.

• Changes in postretirement medical plans reduced Lee’s benefit obligation by approximately $23 million, effective January 2009. In December 2009, the company notified certain participants in those plans of changes to be made, including increases in premium cost sharing and elimination of coverage for certain participants. The changes are expected to reduce the benefit obligation by up to $30 million.

• Lee is engaged in various efforts to continue to reduce its operating expenses in fiscal 2010 and beyond. The company expected its operating expenses to decline approximately 17-18 percent in the 13 weeks ending Dec. 27, and plans an additional 6-7 percent reduction in 2010.