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The New York Times Co said on Wednesday it would cut jobs, including about 7.5 per cent of newsroom positions, to lower costs as advertising revenue from its print business dwindles and new products fall short of expectations. The company's shares rose as much as nine per cent.
The publisher will cut 100 newsroom jobs and a smaller number of positions from its editorial and business operations, offering buyouts and resorting to lay-offs if enough employees do not leave voluntarily, it said in a letter to staff. NYT Opinion, a mobile app dedicated to opinion content, will be shut down as it was not attracting enough subscribers, Executive Editor Dean Baquet said in the letter. "We will also redesign the magazine, create new journalistic features like the Upshot and First Draft, and adapt our journalism to a world where an increasing number of readers find us on mobile," he said.
The Upshot is a section offering analysis and data on politics, policy and everyday life, while First Draft is a section focusing on fast-paced political news.
NYT has cut jobs several times over the past six years - 100 in 2008, another 100 in 2009, and 30 more at the beginning of 2013, according to an article published on the company's website on Wednesday. Despite the cuts, its newsroom staff has grown to about 1,330, approaching its largest size ever, according to the article, up from about 1,250 at the end of last year. Some of this is due to new jobs in its digital business.
NYT will invest heavily in mobile, audience development, digital product portfolio, advertising and targeted areas of print over the coming months, the company said.
Digital ad revenue is expected to rise by about 16 per cent in the third quarter, driven by smartphones and video, but overall ad revenue is likely to stay flat, the publisher said.
The company's second-quarter revenue fell as print ad revenue declined. It said in July print ad revenue was expected to fall further. "Print advertising is notoriously volatile and the third quarter was no exception," the New York Times said on Wednesday.
The company's shares were up 8.1 per cent at $12.13 on the New York Stock Exchange in late morning trading. Up to Tuesday's close, the stock had fallen nearly 30 per cent this year.
