Summary of the Article

Summary of the article:
Tribune to cut, outsource 250 call-center jobs
Reuters
Chicago Business
August 25, 2006
In a move to cut costs and increase the value of its stock, Tribune Co. announced plans to cut 250 jobs at its
newspaper call-centers and transfer those services overseas. APAC Customer Services of Deerfield, Illinois
will run the call center, with calls being routed to its operations in the Philippines.
Of the 250 jobs to be cut, 120 are full-time positions and 130 part-time. The job cuts represent approximately
1 percent of Tribune’s publishing operations. Newspaper operations that will be affected include The
Chicago Tribune and The Baltimore Sun. Tribune has already outsourced its call-center for The Los Angeles
Times.
Other measures Tribune has either taken or is considering in its attempt to trim costs and increase its value
include stock buy-backs, the sale of assets and spinning off its broadcasting division.
-By shifting its call-center operations overseas to reduce costs, Tribune, Co. is applying the economic concept of

A) thinking at the margin.
B) comparative advantage.
C) diminishing returns.
D) using assumptions to simplify.