Liz Smith Out of Newsday, Saying She Won't Take 95% Pay Cut

The newspaper and Tribune have been cutting costs, particularly since June, when Newsday said it had inflated its circulation by tens of thousands of papers a day. Raymond Jansen, the longtime publisher of Newsday, retired under pressure the next month. In November, Newsday said it was eliminating about 100 jobs, some through layoffs.

"Liz, who first joined Newsday in March 1991, did not exercise her option to extend her contract, which has expired," said John Mancini, the newspaper's editor, in an e-mail message to employees.

"We subsequently attempted to negotiate a new arrangement with her but could not come to mutually agreeable terms." Stu Vincent, a spokesman at Newsday in Melville, N.Y., declined to elaborate.

Despite losing Newsday as an employer and a carrier for her gossip, Ms. Smith's work will continue to reach a wide audience. She recently signed a new two-year contract with The New York Post. And Tribune Media Services, also owned by the Tribune Company, will continue to distribute her column to dozens of newspapers, according to John Twohey, vice president for editorial and operations at Tribune Media. Ms. Smith declined to say how much Newsday paid her, but she was estimated to be earning $1 million from various sources in 1998.

Mr. Blasband, Ms. Smith's lawyer, said he had filed requests for arbitration with Newsday and with the American Arbitration Association.

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