Boston Media Jobs in Jeopardy
Posted on April 14, 2009
The New York Times Company has threatened to close The Boston Globe unless labor unions agree to pay cuts and the cessation of pension contributions, according to an article by The New York Times. In addition, the Times company hopes to end a provision in the Globe’s contract that gives certain employees lifetime job guarantees.
The company needs to find $20 million in savings from the Globe, which has already seen several rounds of cost-cutting and staff layoffs. Executives believe the company lost tens of millions of dollars last year. Without the demanded concessions, it’s thought the Globe would lose $85 million this year.
The New York Times Company purchased the Globe for $1.1 billion in 1993, which was the highest price paid for a single American newspaper. During 2008, the Globe had a circulation of 324,000, the 14th highest in the country, and a Sunday circulation of 504,000, the 11th highest in the country. But since that time, advertising revenue in the newspaper industry has declined by 16.6 percent.
The Times company also recently made it known that it would ask most of its employees to take a 5 percent pay cut for the remainder of 2009, including those at The New York Times. The company has resolved to borrowing money and selling assets to help raise cash amidst the economic decline.