Another sad sign of the Times
The New York Times Co. has threatened to shut The Boston Globe unless the newspaper's unions swiftly agree to $20 million in concessions, union leaders said yesterday.
The newspaper industry, which had already been struggling as readers and advertisers moved to the Internet, has been hard hit by the recession, and the Globe is no exception. The newspaper's advertising revenues have declined sharply in recent years; once robustly profitable, it is now losing money.
This week, the Globe newsroom completed cutting the equivalent of 50 full-time jobs. But the deteriorating economy has made the Globe's financial outlook much worse. Management told union leaders Thursday that the Globe will lose $85 million in 2009 unless serious cutbacks are made, according to a Globe employee briefed on the discussions. Last year the paper lost an estimated $50 million, the employee said.