NYT to Cut All Salaries by 5%

The New York Times Co. is planning to cut all salaries across the board (including other papers in its group) by 5 percent, starting next month, under a plan that appears to be similar to many furloughs with each staffer given an additional 10 days off per year. A memo from New York Times Company Chairman Arthur Sulzberger Jr. and CEO Janet Robinson explains the move below. Times executives also indicated that about 100 layoffs are likely. It will work with the Guild to reduce layoffs.Also, the board of directors of the New York Times approved salary reductions of 5 percent for executive officers according to a regulatory filing with the Securities and Exchange Commission. The salary reduction is effective April 1 through Dec. 31, 2009 representing 4 percent on an annualized basis. Executive officers will also be entitled to an additional 10 days off to use before the end of the year.From an article at the Times site: "The layoffs represent almost 5 percent of the more than 2,000 employees in the business operations of the flagship Times newspaper. It comes on top of other recent downsizing steps by the company, including the layoffs of 27 people in The Times’s advertising department last month, and of about 500 people in January, with the closure of City and Suburban, a newspaper and magazine distribution subsidiary. At the end of 2008, the company had 9,346 employees, down from 10,710 who worked in the same operations two years earlier."The memo follows:Dear Colleagues: As you know, the global economic crisis is taking its toll on a broad range of businesses and sectors, here in the U.S. and around the world. We have reported in our own newspapers and on our own Web sites that the economy is likely to continue struggling throughout this year and possibly longer. Given this economic outlook and the changes occurring in the media business, we, regrettably, must take even more steps to lower costs. We have been, and continue to, reorganize and reduce our staff, which means we are saying goodbye to many of our close colleagues. Now, in addition, we are lowering salaries through the end of this year for all remaining nonunion employees and, in exchange, providing additional time off. We plan to approach the Newspaper Guild in New York to ask for its participation in the program and to continue working with our unions in Boston and our other locations on lowering our costs, including wage reductions.The salaries of all employees at The New York Times Media Group (with the exception of the IHT, which is working on other cost reduction measures), The Boston Globe, Boston.com and Corporate in New York will be rolled back by 5 percent, starting this April, and these employees will receive 10 additional days off to use before the end of the year. At the About Group, Baseline, Globe Direct, International Media Concepts, Regional Media Group, Shared Services Center and Worcester Telegram & Gazette, the approach is similar, with salaries being rolled back by 2.5 percent with five additional days off. We made the distinction between the two groups by taking into account location and other factors. Next year, we plan to return salaries to their current levels. Of course, such a decision depends on the state of our business.Many of you will have questions about these actions. Your manager or department head has been briefed with more details and is your best source of information.This was a very difficult decision to make. The environment we are in is the toughest we have seen in our years in business. Across our Company, you and your colleagues have worked hard to introduce innovative products and services, reduce expenses and improve productivity. We are deeply grateful for your efforts and proud of your achievements. As we take these painful steps together, we remain confident that our great Company will keep moving forward to better times.

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NYT to Cut All Salaries by 5%

Adweek Staff

Joe Strupp

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Adweek Staff

Joe Strupp