The New York Times Co. isn’t fooling around with these cutbacks! Richard Perez-Pena is reporting in today’s NYT that the company is looking into closing(not selling, but closing) The Boston Globe “unless labor unions agree to concessions like pay cuts and the cessation of pension contributions, according to a person briefed on the talks.” That is quite the bargaining tactic.
The company is looking for $20 million in savings from The Globe, which has already gone through several rounds of deep cost-cutting and staff reductions.
The company paid $1.1 billion for The Globe in 1993, the highest price ever paid for a single American newspaper, and it was highly profitable through that decade. But in recent years, the erosion of advertising and newspaper circulation has been more severe in the Boston area than in most of the country.