NY Times to slash 100 newsroom jobs
The note from publisher Arthur Sulzberger and chief executive Mark Thompson also said that a mobile app dedicated to opinion content was shutting down because it lacked enough subscribers.world Updated: Oct 01, 2014 22:40 IST
The New York Times said on Wednesday it plans to cut 100 newsroom jobs in the latest move by the prestigious daily to adapt to industry upheaval.
"The job losses are necessary to control our costs and to allow us to continue to invest in the digital future of The New York Times, but we know that they will be painful both for the individuals affected and for their colleagues," according to a note to employees cited by the daily.
The note from publisher Arthur Sulzberger and chief executive Mark Thompson also said that a mobile app dedicated to opinion content was shutting down because it lacked enough subscribers.
The job cuts represent around 7.5% of the newsroom staff of 1,330 -- which according to the newspaper is a record high. The Times has been adding jobs over the past year for online and video news initiatives.
The Times will be offering buyouts to journalists and will resort to layoffs if it cannot get enough people to leave voluntarily, according to the note.
The daily has been struggling to remain profitable in recent years and has been pushing harder to emphasize digital content as print subscriptions decline. The Times has also been selling off "non-core" assets including the Boston Globe newspaper and websites unrelated to its news operations.
But even as the Times shifts its focus, it is being challenged by a new breed of all-digital news operations with lower costs.
Executive editor Dean Baquet, in a separate note to the staff said he would use the opportunity "to seriously reconsider some of what we do -- from the number of sections we produce to the amount we spend on freelance content." The news comes following a tumultuous period which saw the dismissal of executive editor Jill Abramson, who was replaced by Baquet.
Abramson's dismissal in May unleashed a polemic in the media world amid speculation that she was fired for complaining about being paid less than her male counterparts -- an allegation denied by the company.
In the most recent quarter, the New York Time Co. reported a sharp drop in profits as lower advertising revenues offset gains in digital subscriptions.
Net profit for the second quarter fell to USD 9.2 million from USD 20.1 million in the same period a year ago. Total revenues fell slightly to USD 389 million, with circulation revenues up 1.4 percent and ad revenues down 4.1 per cent.
The bottom line was also hurt by higher operating costs, which the company attributed to increased investments in boosting the digital profile of the prestigious newspaper publisher.
Digital advertising revenues were up 3.4 percent but that failed to offset a 6.6 per cent drop in print advertising revenue.
First Published: Oct 01, 2014 22:14 IST