As U.S. newspaper publishing company Media General struggles with paying off debt and a plunge in advertising dollars, it has cut its quarterly dividend to 12 cents per share, down from 23 cents, Reuters reported.

The cut is a “response to the continued weak economic conditions impacting out businesses and industry, and allows cash flow to further reduce our debt,” Marshall Morton, chief executive of the publishing group, said in a statement. Advertisers across the United States are tightening advertising budgets due to the dwindling economy, which experts have predicted will cut ad spend in all sectors.

The idea to slash the dividend came from Harbinger Capital Partners, which has three members sitting on Media General's board, Reuters reported.

Media General's newspapers include the Richmond Times-Dispatch and The Tampa Tribune. The company's shares were up 68 cents Thursday, to US$13.19, according to Reuters.