Battered by the recession, Daily News LP, owner of the New York Daily News, is suspending its employer contributions to the companys 401(k) retirement plan.
In a letter to employees sent Tuesday, CEO Marc Kramer said the newspaper had no choice but to suspend the contribution, effective with the pay period beginning Feb. 15.
We do not know how long the current financial crisis, and the dramatic decline in advertising revenues, will continue, he wrote. So we must do everything possible to ensure that we match our costs with our revenue.
Mr. Kramer added that the company was committed to reinstating the matching contribution feature of the plan as soon as the business climate allows.
The size of the match could not be learned by deadline.
According to MMD, Daily News LP had $249 million in retirement assets as of April 2005, with $157 million in two 401(k) plans. The company had another $82 million in a defined contribution plan and $38 million in a 401(k) plan for its U.S. News & World Report unit.
A spokesman for the News declined to comment.
Matthew Flamm is a reporter at Crains New York Business, a sister publication of Pensions & Investments