Facing a worsening than expected drop in revenue, The New York Times Co. has eliminated 100 jobs at the Times and will reduce non-union salaries by as much as 5 percent for nine months, in return for 10 days’ leave.
At the same time, The Washington Post said it wants to buy out an unspecified number of employees.
According to the Times, in addition to the 100 lost jobs on the business side, the company will make the pay cuts unilaterally for most nonunion employees, including top executives, in its corporate division, at the flagship Times newspaper and at the Boston Globe. The trimming will also extend to workers at smaller parts of the company, including About.com and a chain of small papers, although those cuts will be 2.5 percent.
The Post’s cuts will come by offering buyouts to employees in its newsroom, production, circulation,advertising and information-technology departments.
The major culprit for both newspapers is a decline in advertising revenue, with the Times’s parent company carrying a heavy debt load and the Washington Post running in the red.
Excerpts from the Times’ memos:
""Given this economic outlook and the changes occurring in the media business, we regrettably, must take even more steps to lower costs. …The salaries of all employees at The New York Times Media Group, The Boston Globe, Boston.com and Corporate in New York will be rolled back by 5%, starting this April, and these employees will receive 10 additional days off to use before the end of the year."
"In a note just distributed, Arthur (Sulzberger Jr.,chairman and pblisher) and Janet (L. Robinson, president & CEO) informed us that the company, regrettably, must take even more aggressive steps to control our costs. Clearly, our course is not getting any easier. The recession, especially the deteriorating advertising climate, is exacting a bitter toll, despite all that we have already done to reduce spending. This morning, we notified about 100 employees on the business side of The Times that their jobs were being eliminated. We thank these dedicated colleagues for all they have contributed to The Times over the years."