By: Staff Reports
Cost-cutting Move Said To Reflect Slowing Advertising Revenues
The New York Times reported Sunday that New York Times
Digital, the new-media division of its parent company, is laying
off about 70 employees, or just under 20% of its work force.
Employees of the division told a Times reporter that the
cuts were in response to slowing advertising revenues. A New York
Times Co. spokesperson would not comment to the newspaper on the
New York Times Digital reported revenues of $37.2 million for the
first nine months of 2000, but losses for that period totaled
$46.2 million. The company had planned to spin off the unit in an
IPO, but those plans have been scrapped.
The news follows News Corp.’s decision last week to close its
separate new-media operation.
Copyright 2001, Editor & Publisher.