RALEIGH, N.C. (AP) — McClatchy Co.’s two daily newspapers in North Carolina will look to save money by cutting 40 jobs and furloughing employees.

The Charlotte Observer and The News & Observer of Raleigh will each cut 20 positions, including five in each news department.

Many employees at the newspapers will also have to take weeklong furloughs.

The Charlotte Observer announced its layoffs on Monday. Publisher Ann Caulkins said the move comes as a shaky economy continues to plague advertisers and revenues remain short of the company’s goals.

During a meeting with employees Monday morning, Caulkins said the company was “living quarter by quarter with our budgets.”

Despite some improvement in ad revenue last year, the economy remains turbulent, and revenues have reflected that, Caulkins said.

But both she and editor Rick Thames said the commitment to news gathering remains strong.

About two weeks ago, The News & Observer of Raleigh announced it was cutting 20 jobs across the staff for the same economic reasons.

The newspaper said some affected employees in Raleigh will have an opportunity to accept a voluntary severance package.

“It is never easy to say goodbye to our friends and colleagues,” Publisher Orage Quarles III wrote in an e-mail message to employees, “but we must make these additional cuts to sustain our company and adjust to economic realities.”

• Associated Press