The Star-Ledger in Newark, and its sister paper The Trenton Times, are “on life support” and could be sold if fewer than 225 workers fail to accept voluntary buyouts, their publishers warned.
The paper’s owners, the Newhouse family, has already hired JPMorgan Chase and could unload the struggling dailies if it can’t obtain new union contracts and get at least 225 non-unionized employees take voluntary buyouts by Oct. 1.
“We have been in negotiations with our unions, but in the past several months the meltdown in advertising has become far greater,” Donald Newhouse, president of parent company Advance Publications, told The Post. “We came to the conclusion that we needed to get the relief we’re asking for and we needed to get it on an expedited basis. We decided if we don’t get it, the only thing we could do is sell the papers.”
The Star-Ledger, which has seen its daily circulation tumble to less than 300,000, is the largest daily newspaper in New Jersey. It’s estimated to be on track to lose $30 million to $40 million this year.
The Trenton Times is projected to be losing about $5 million.
In separate memos sent to employees yesterday, Star-Ledger Publisher George Arwady and Trenton Times Publisher Richard Bilotti each said their respective papers faced a “crisis,” and warned it would take a massive number of buyouts to save the papers.
“We have one last chance of survival,” said Bilotti in his letter to employees.
At the Star-Ledger, the goal is to reach 200 voluntary buyouts, while at the Trenton paper the target is 25.
Making matters especially dire for the Trenton Times is that even if that paper gets 25 voluntary buyouts, it will be shut down if the Newark paper misses its target.
“The situation is critical. The Star-Ledger and the Times are currently on life support,” said Bilotti.
Added Arwady, “A minimum of 200 full-time non-represented employees out of a total staff of 750 at the Star-Ledger must accept a buyout offer.”
The severance package offers employees a year’s pay plus one year of medical benefits.
The papers’ drivers and the mailers are unionized, while employees in the business, editorial, circulation and advertising departments are not.
Employees have until Oct. 1 to accept the buyout offer.
Newhouse said it is still the family’s hope to keep the newspapers as part of Advance, which also includes the glitzy Condé Nast empire ledby Donald’s brother, S.I. Newhouse Jr.