More cuts coming.
The job-cut knife is again being brandished at New York Times Co., as the struggling newspaper publisher prepares to launch another round of employee buyouts to further trim costs.
The Times told its biggest union that it is willing to offer buyouts rather than laying off workers because members had “stepped up” to help the paper earlier this year by agreeing to a temporary pay cut proposed by management.
The New York Newspaper Guild said in a memo to members that the Times promised to honor their agreement and end the 5 percent pay cut on Jan. 1. The Times imposed a similar pay cut on non-union workers but didn’t say whether it would restore their pay.
The Times and the Guild said they would meet again to discuss the details of the possible buyout offer, including the number and the timing.
The meeting between the Times and the Guild “took place in the spirit of cooperation,” according to the memo, and was part of the process both sides agreed to last spring when they hammered out the pay reduction.
At the meeting, the Guild said it also supplied some ideas for trimming costs, such as instituting a four-day work week, being more flexible with comp time and reducing paper use in the building.
Last year, the Times laid off workers to reduce newsroom headcount by 100 after failing to get enough workers to take voluntary buyouts. The Times didn’t disclose how many were voluntary versus involuntary.
Cost-cutting has helped the Times stay afloat — and post a surprise profit in the second quarter — but the paper is still burning through cash, and remains mired in a severe ad slump along with the rest of the industry.
The Times, which has slashed jobs and sold assets to weather the downturn, is seeking a buyer for the Boston Globe after achieving $20 million in union concessions.
Negotiations with the Boston paper got off to an ugly start when management threatened to shut down the money-losing New England daily unless the unions agreed to bargain. The Boston paper’s largest union eventually approved a package of cuts, but only after narrowly voting down a similar proposal.