San Jose--Jay Harris, chairman-publisher of The San Jose Mercury News
, announced Monday that he was resigning, warning his corporate bosses at Knight-Ridder Inc. that their profit targets risked "lasting harm" to the Silicon Valley newspaper. The resignation comes soon after Knight-Ridder, which also publishes The Miami Herald
, said layoffs were possible at some of its newspapers because of the softening advertising market. In a related story Knight-Ridder said on Monday that the weak advertising market would cause first-quarter earnings to fall about 25% from a year ago. Total advertising fell 2.7% in February, the company said, with weaknesses in classified, help wanted and automotive contributing to the drop-off.