New York Times to cut 550 jobs with plant closing

New York Times Co. said Monday 550 jobs will be eliminated when it closes its metropolitan distribution center in January.

The publisher's departure from the wholesale distribution business coincides with the ongoing struggles of the newspaper sector. The industry has watched advertising revenue fall as consumers and advertisers increasingly shift to the Internet. A confluence of economic conditions, including diminishing credit, the ongoing housing downturn and rising gas and fuel costs, has also pressured the sector.

The Times' City & Suburban center was responsible for the delivery of its namesake paper as well as approximately 200 other newspapers and magazines to newsstands and retails outlets in the New York metropolitan area. The company will now rely on third-party wholesalers and its own drivers for distribution.

New York Times said it plans to offer severance packages to the center's workers and will update its outlook during the fourth quarter to account for the severance costs and anticipated cost savings.

In morning trading, shares rose 25 cents, or nearly 2 percent, to $13.82.

Source: Businessweek.com