As per sources, The New York Times Company (NYT) will layoff close to 21 union employees this week, exceeding its initial estimation. In October, the company had announced its plan to reduce workforce by 100 employees across the newsroom section and from other business operations through buyouts to cut costs.
The company has already received atleast 90 buyout applications, from 57 union members and the rest from non-union members. Firing additional employees portrays the grim situation that traditional publishing houses are currently grappling with.
Apart from layoffs, The New York Times Company is trying every possible means to augment its profitability. This Zacks Rank #2 (Buy) company has been adding diverse revenue streams, including a pay-and-read model to make it less vulnerable to economic conditions. The company is also adapting to the changing face of the multiplatform media universe, and has already included mobile and reader applications to its portfolio. It also shut down NYT Opinion, a mobile app, as it failed to generate enough subscriptions.
Layoffs are rife within the media/publishing circle. Apart from New York Times, two other diversified media giants have announced plans to trim their workforce in order to rein in costs and divert resources to augment digital operations. These include Time Warner Inc’s (TWX) and Gannett Co., Inc. (GCI).
Time Warner has announced job cuts across all its three divisions, namely Turner Broadcasting, Warner Bros and HBO. These layoffs are a part of the streamlining process that the company has adopted after thwarting an $80 billion bid by Rupert Murdoch, CEO of Twenty-First Century Fox, Inc. (FOXA).
Earlier this year, Gannett had also announced the elimination of 60 to 70 staff across the newsroom section and other business operations. The move is being seen as part of Gannett’s restructuring plan to split its print business from its profitable broadcasting and digital ventures.
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