The New York Times Company announced on Wed. it will fire 100 newsroom employees to scale down costs and to use the money to produce digital news products.
Aside from the newsroom division, the business and editorial divisions of the esteemed newspaper will also be facing job cuts.
New York Times Company will be materializing the plan by selling the company's shares via a buyout and probable firing of employees when the company is not able to attain the desired amount of money through the buyouts.
"The job losses are necessary to control our costs and to allow us to continue to invest in the digital future of The New York Times, but we know that they will be painful both for the individuals affected and for their colleagues," according to The New York Times' Chairman Arthur Sulzberger Jr and CEO Mark Thompson.
The New York Times Company has been experiencing difficulties in putting out several products in the market.
The company debuted the NYT Opinion, an application introduced in iPhone where users can have access and subscribe to the newspaper's Opinion section that features such as Room for Debate, Op-Docs, Op-Talk and Editor's Opinions that will cost $1.50 a week to subscribe.
Aside from the NYT Opinion, another mobile application, NYT Now provided readers with curated series of stories and news.
Because of the seemingly shortcomings from both the NYT Opinion and NYT Now, The New York Times Company was forced to re-evaluate their long term plans and their company goals.
On the other hand, NYT Cooking proved to perform better and capture larger markets, more than a million after two weeks of launch, since its free-for now. The New York Times Company will begin charging subscription fees once the application gains a definite audience.
The company is still "experimenting" and testing out the waters for introduction of new digital products in the market.
The New York Times Company increased 9.6 percent and closed at $12.3.
