NEW YORK: The New York Times announced yesterday that its earning per share fell more than 50% in the second quarter compared to a year ago, due to losses on asset sales and weakness in print advertising.
The company said it plans to cut costs by $230 million over the next two years.
Part of those cost cuts will come from a printing plant consolidation and from a reduction in newsprint use. But the bulk will come from reduction in "the general and administrative, production, technology, distribution, circulation, and sales" categories, according to Times Company corporate communications head Catherine Mathis.
The communications department could be considered part of the "administrative" function, Mathis said. But she emphasized that the cost cutting plan is in a rather broad outline stage at this point.
The company has not indicated any plans to make further cuts to the editorial budget, or to implement newsroom layoffs as part of the plan.
The company's online revenues were up 23% and accounted for more than 10% of total revenue. But they do not appear to be poised to close the gap in the weak print advertising market.