The Star-Ledger extracted millions in concession from its unionized pressmen, mailroom workers and machinists in September under threat of closing the paper down — but it was apparently not enough for the paper to get to break even.
The paper’s parent company, Advance Publications, said it will launch a new company this spring, to be called NJ Advance Media, and lay off an undisclosed number of employees as it tries to centralize back-shop operations at a variety of New Jersey and Pennsylvania papers.
Star-Ledger publisher Richard Vezza, who heads the new company, said that “unfortunately” there would be more layoffs.
In an interview with Media Ink, he said, “I do not want to say [how many] until I’ve had a chance to talk to employees.”
Vezza said the paper lost about $19 million last year and, even after the union concessions, the paper was still going to lose about $15 million this year.
Asked if this new consolidation was going to be enough to make it profitable, he said, “It will improve our ability to increase revenue and service our readers and advertisers. Where it goes from there, I can’t tell you.”