The New York Times Co. (NYT) announced another round of cuts in its headcount amid the secular and cyclical slowdown in print advertising. The company plans to trim newsroom staff by 8% or nearly 100 jobs by the end of the year through buyouts or layoffs.
Previously in 2008, the company had eliminated 100 newsroom jobs. Earlier this year, The Times announced a pay cut of 5%. The company, which is under severe financial pressure, has been trying all means to survive the worst recession.
The New York Times currently employs 1,250 editorial staff, which is significantly higher than other U.S. newspapers where the numbers are not more than 750.
Like The New York Times, other newspaper companies like Washington Post Co. (WPO), Journal Communications (JRN), Gannet Co. (GCI) and McClatchy Co. (MNI) have long been grappling with the slump in print advertising demand amid the global meltdown, as advertisers are migrating to the Internet driven by increasing online readership and lower ad prices than print.
This has compelled many newspaper companies to undertake cost-cutting measures, lower headcount, pay cuts, furloughs, and close of printing facilities. The companies are now even considering charging readers for online content.
Last week, The New York Times announced that it has abandoned the plan to sell Boston Globe, the daily newspaper, but is still exploring options for the Worcester Telegram & Gazette. The company is also trying to sell its minority stake in the New England Sports Ventures that owns the Boston Red Sox baseball team and related cable television properties.
The company will report its third-quarter earnings results on Oct 22.
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