News & Observer | newsobserver.com | Yellow pages publisher trims jobs

Published: Oct 08, 2008 12:30 AM
Modified: Oct 08, 2008 05:57 AM

Yellow pages publisher trims jobs

 

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Yellow pages publisher R.H. Donnelley laid off "less than 30" workers in Morrisville on Tuesday as part of a previously announced cost-cutting effort.

Cary-based Donnelley, which employs more than 4,000 workers nationwide, also laid off 46 workers in Bristol, Tenn., and a dozen in Dunmore, Pa., this week, said company spokesman Peter Larmey.

More cuts are possible, but none are definite, Larmey said.

The workers laid off this week work in design, which focuses on page layouts, and publishing, which handles printing and distribution of the yellow pages directories that Donnelley publishes in 28 states.

"We are looking at areas that will help improve efficiencies without impacting how we deliver to our customers," Larmey said. "Unfortunately, it's something we have to look at."

The cuts leave Donnelley with about 570 workers in the Triangle -- in Morrisville and at its Cary headquarters. The Morrisville workers' last day is Friday.

Donnelley said in July that it was initiating a new round of cost cuts that could involve the elimination of more jobs as a result of weak ad sales. The company expects ad sales, a leading indicator of future revenue, to fall 7 percent to 8 percent this year. Sales are declining amid the national economic slowdown and as advertisers shift to the Internet.

Earlier this year the company eliminated at least 240 jobs, mostly through attrition but including some layoffs.

The cuts come against a backdrop of a plummeting share price -- the stock has lost 98 percent of its value in the past year.

Donnelley shares closed Tuesday at $1.27, down 13 cents. A year ago, the shares cost more than $60.

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