Trib Co. can pay bonuses, not severance

The Associated Press reports that a federal bankruptcy judge ruled that the Tribune Co. can pay more than $13 million in bonuses to almost 700 employees for their work last year.
But the judge denied allowing the Tribune to pay more than $2 million in severance payments to more than 60 employees laid off shortly before the Chicago-based company filed for bankruptcy protection.
From the story:

"We need to motivate and incentivize the key people who will implement change," Bigelow said. "These are really good people we're talking about. They're the best and the brightest of the company."

Star-Ledger announces cuts

George Arwaday, publisher of The Star-Ledger of New Jersey, sent a memo to employees Thursday detailing new pay and benefits cuts at the paper. The entire memo has been posted to Poynter's Romenesko blog.
From the memo:

The first $40,000 of your new combined annualized income will be cut by 5%. If you make more than $40,000, your next $40,000 in income up to $80,000 will be cut by 10%. Any annualized income over $80,000 will be cut by 15%.

In addition, Arwaday told employees that any bonuses they receive will be rolled into their salary and not delivered all at once at the end of the year.
In addition, all employees will now have to pay for 25 percent of their health care coverage. These moves were put in place to help offset a $20 million year-over-year drop in first quarter ad revenue.
To read the memo, click here.