In the adverse business conditions, the company declared to cut its workforce by fifteen percent of the total which is a significant loss for the company. The company has cut total 1600 jobs in the company and also shrunk the salaries of its executives of the top level to reduce its financial burden. According to the Associated Press, the decision taken up by the McClatchy has relations with its plan to save an amount of $110 million in the next financial year. Another report from Bloomberg described the brand name The New York Times in the adverse business scenario.
The reputed brand of newspaper industry The New York Times declared to sell off its space which it possesses at its Manhattan Headquarters for an amount of $225 million. The New York Times declared the intention behind the selling of their spaces is to repay the debt of the company (Bachmann, 9/3/2009). The Christian Science Monitor is another major brand which has seen a huge loss at the rate of $18.9 million every year due to which it decided to bring its daily printing of newspaper to an end.
The company started to publish their news weekly instead of daily prints. The Rocky Mountain News closed its news publishing business with its last released publication on 3rd of April and the company has its existence since 149 years in the publishing industry. The company lost around $1.5 million per month. The San Francisco Chronicle has also its name in the publishing industry from last 144 years which has also arrived at the verge of its closing. The company decided to cut back its employee’ s salaries to save the business.
The company faced a massive loss of $50 million in 2008 which broke its spine bring it to an end. The industry has seen a drastic fall in their finances with minimizing capital amount needed for the business operations. The economic factor influences the newspaper publishing business because of the value which is associated with the economic changes taking place across the globe.
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