New York Times to cut $2 million in 2016 as it tries to turn around business
New York City is facing a dire financial situation as the paper’s revenue declines and its advertising dollars dwindle.
The New York Post, whose owners include Rupert Murdoch’s News Corp., is trying to do the same.
The Times is hoping to save as much as $2.6 million annually by eliminating more than 10,000 full-time positions, according to people familiar with the matter.
The company is also reducing the number of reporters it hires by nearly 10% in the coming years and will cut about a third of its staff by 2020, the people said.
The Post, owned by the Murdochs for years, will have a net loss of about $2 billion in 2016.
The layoffs would affect about 50% of its employees, including about 400 people who are part of the News Corp. News Corp owns the Post.
The news portal has struggled for years.
Last year, it reported a net income of just $6.6 billion, down from $15.9 billion in 2013.
The loss was mostly due to a drop in subscriptions to its news and commentary sections, which were down from nearly 8 million to 6.2 million last year, according a company document seen by Bloomberg News.
The newspaper is seeking to cut its losses by more than 40% by 2019 and by more nearly 70% by 2020.
The paper has also been struggling to attract advertisers.
The number of paid subscriptions to the news portal fell from about 2.3 million in the second quarter of 2014 to less than 600,000 in the first quarter of this year.
News of the layoffs came on the heels of the news that the company had laid off a majority of its journalists last week, the newspaper reported.
The cuts came as the company also announced it would be reducing its workforce by about 40% to about 600 by 2020 from about 7,200.
The latest news comes as the newspaper is facing scrutiny over a series of editorial decisions, including an editorial titled “The Truth About the American Middle Class.”
It was widely reported that the Times’ editorial board endorsed the idea of raising the minimum wage to $15 an hour.
In the editorial, the Times wrote that it was “concerned about rising inequality, which is a growing concern in our country, and that a $15 wage would be a significant step in the right direction.”
It also cited a report that showed the minimum-wage increase would lead to a $2 trillion loss in the economy over the next decade.