New York Times to cut workforce
After the motor and technology companies, it is the turn of media group New York Times to announce job cuts. The corporation warned the market yesterday that they are expecting lower than estimated third quarter earnings and they would probably have to cut on their workforce by around 500 employees. This number is around 4% of their total workforce and would come as a great disappointment to the workers in the newspaper.
They would be laying off these workers over a period of 6-9 months starting next month. NYT said that they expect third-quarter earnings to be in the range of 11 cents to 14 cents a share. This is quite a disappointing result compared to last yearâ€™s figures of 33 cents. One of the prime reasons for this result is the increasing cost of operations and weak media advertising environment.
Market analysts expected the company to return earnings of around 25 cents a share. The company is also now concentrating on moving aggressively to reduce costs across all its business units. One of the most affected branches of the group would be the New York Times Media Group where around 250 positions are expected to be reduced.
Many other news organizations have struggled in the recent times with the advertisement market dwindling down and users moving to online sources for their information and news.