The Los Angeles Times reports on the significant decline of McClatchy, once a major newspaper chain in California, highlighting the broader crisis facing local news organizations across the state. McClatchy, which was once the third-largest newspaper publisher in the U.S. by circulation, has undergone severe cuts in recent years, with layoffs affecting over 90 unionized journalists across 17 publications. The Sacramento Bee, McClatchy's flagship publication, recently eliminated its sports desk and opinion section, while smaller papers like the Modesto Bee and Fresno Bee have seen staff reductions of 25% and 41%, respectively. The Fresno Bee's Spanish-language publication, Vida en el Valle, was completely shut down, leaving only one Spanish-language outlet in the area. The decline of McClatchy, which has seen its workforce shrink from 16,800 employees in 2006 to just 3,500 by 2018, reflects a larger trend in the industry: California has lost over 12,000 local journalists since 2002, and nearly 40% of all local U.S. newspapers have disappeared. The article discusses Assembly Bill 2222, which would provide refundable tax credits to local news organizations based on the number of journalists they employ. The bill has passed both houses of the California legislature but faces opposition from groups like the California Taxpayers Assn. and the California Chamber of Commerce, which argue it raises taxes on employers. Supporters, including the California News Publishers Assn., argue the bill would strengthen democracy by keeping newsrooms operational. McClatchy's struggles are compounded by financial challenges, including a bankruptcy in 2020, shifts in ownership to a hedge fund, and the rise of AI tools that have led to internal conflicts within newsrooms. The article concludes by noting that the loss of local journalism impacts communities' ability to hold power accountable, with reporters like Melissa Montalvo, who was laid off from the Fresno Bee, emphasizing that 'the whole community will feel the loss' of dwindling investigative resources.

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