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Media

New York Times Gives Back Its Layoff Gains

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By Douglas A. McIntyre Published
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It is hard to fool all of investors all of the time. The New York Times Co. (NYSE: NYT) did succeed in fooling some investors over the course of the past several days as it laid off more than 100 workers at its flagship paper (although that and company are about the same after a series of divestitures). The cuts pressed the stock up from $11.22 to $13.08 over the course of two trading days. Shares had fallen back to $12.26 Tuesday morning, which is below the $12.36 where the stock traded a month ago.

Wall Street quickly realized what newspaper experts already knew. The revenue at the NY Times is unlikely to grow in future years, and probably will shrink. The trend of the past decade will persist. The erosion of print advertising and print subscriptions will not be replaced by digital advertising and online subscribers. There is actually a case to be made that digital ad revenue will drop as robots buy advertising to get marketers the best rates. Also, the growth of the number of people who will pay for the Times online has slowed and at some point will peak.

What all of this points to are more layoffs followed by more layoffs over the next several years. CEO-in-reality Arthur Sulzberger Jr. could dump his cousin, Michael Golden, and CEO-in-name only Mark Thompson. That would save the company something on the order of $7 million a year. This would not make employees cut in the future feel any better. It would, however, show that the executive suite is willing to make a gesture.

ALSO READ: The Future of Some Newspapers Is Worse Than It Looks

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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