By: Joe Strupp A New York Times-owned distribution service that handles delivery of the Times in the New York area -- along with some 200 other publications from the New York Post to Advertising Age -- is shutting down in January, eliminating some 550 jobs, the company revealed.
City & Suburban, the delivery company that distributes the Times locally, along with the Post, New York Daily News, Wall Street Journal and other newspapers and magazines such as The New Yorker and Harper's, is being closed in a money-saving move, the Times revealed.
"Going forward, The New York Times will be distributed to newsstands and retail outlets through a combination of third-party wholesalers and the Company?s own drivers," the release stated.
?We have made the decision to exit the wholesale distribution business,? Scott Heekin-Canedy, president and general manager of The New York
Times, added in a statement. ?This was a difficult decision to make since it affects a large number of dedicated employees. But the business environment has changed dramatically since 1992 when City & Suburban was formed and wholesale distribution is no longer an economical business for the Times Company.
"With this change, we move to a distribution model similar to that of our national edition, which is delivered by third-party organizations," he added. "We expect that this will have no effect on retail availability of The Times, and it will allow us to improve our financial performance.?
The release stated that: "the company plans to ease the change by providing severance packages to them." No details of severance were revealed.
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