Seattle Times publisher hints at deep cuts

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In 2000, the paper booked $270 million in ad revenue, while in 2007, it fell below $200 million, he said.

"Our Seattle Times newspaper losses for the decade will exceed $40 million -- a staggering number," he wrote.

The publisher's senior leadership group has "found reductions of about $21 million" and needs to cut an additional $6 million "to ensure stability next year," Blethen said. Even saving $27 million "leaves a significant gap with the revenue losses," he said.

But, he said, if The Times can adjust to lower revenues, "I believe we are on our way to creating the metro newspaper model of the future."

That newspaper would appear in print and online, offering news, information and advertising, he said. Though online ad revenue is essential, it now equals only about 10 percent of The Times' print revenue, he said.

Blethen noted that the McClatchy Co., which owns 49.5 percent of the controlling stock of The Times Co., has twice written down the value of that holding.

The shares were valued at "well over $200 million" when the Sacramento, Calif.-based company acquired them through its $4.1 billion purchase of Knight Ridder Inc. in June 2006, he said. They were valued at "only $19 million" last month, he said.

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