The New York Times Company (NYSE:NYT) announced Wednesday that it will be reducing its newsroom employees by 100 to cut costs and redirect some funds to the creation of digital news products. A few other positions from the business and editorial operations will also face the cut.
The company has said that it will be doing so through buyouts and possible dismissal if they do not reach the desired number through the buyouts.
“The job losses are necessary to control our costs and to allow us to continue to invest in the digital future of The New York Times, but we know that they will be painful both for the individuals affected and for their colleagues,”
said the announcement by the company’s Chairman Arthur Sulzberger Jr and CEO Mark Thompson.
The New York Times Company (NYSE:NYT) has been trying out different products in the market with little success, forcing the company to relook into their relevance to the company’s long terms goals. The company introduced NYT Opinion, but it failed to meet the expectations of the company, calling for its termination. NYT Now too hasn’t been able to meet the company’s expectations.
NYT Cooking has however performed better, although it’s currently free and is expected to start charging subscription fees once it has built a large solid audience. The product got above a million visitors within two weeks of launch.
The New York Times Company (NYSE:NYT) is working to expand its digital products to increase its revenue. The products that the company has been introducing are however treated as “experiments” that can either be strengthened or terminated anytime based on their performance.
The company said there has been improvements from a more challenging second quarter, with the third quarter expected to post 16% digital advertisements growth.
The news saw The New York Times Company (NYSE:NYT) shares jump 9.6% to close at $12.3.
This article has been written by Victor Ochieng.