New York Times outsources distribution and lays off 550 employees
The New York Times, arguably the most important newspaper in the U.S., is shutting down its distribution subsidiary. Starting in January 2009, the newspaper, which has a circulation in the millions, will lay off approximately 550 employees. The publisher stated matter-of-factly that distribution is simply no longer a profitable business model.
The New York Times, probably the most important newspaper in the USA, is dissolving its sales subsidiary. As of January 2009, the newspaper, which is worth millions, is parting ways with around 550 employees. Intermediary trade is simply no longer a profitable business model, the publisher announced dryly. In future, the newspaper intends to outsource this task to external companies that work more cost-effectively.
After the newspaper, founded by Adolph Ochs in 1896, had feared the trade unions for years, especially the one whose members delivered the newspaper, it set up its own distribution subsidiary in 1992. In addition to the newspaper, it currently supplies around 200 publications to kiosks, bookshops and cafés. This will soon be over. According to the New York Times, the Internet and high fuel costs in particular have taken their toll on the subsidiary.
After the newspaper, founded by Adolph Ochs in 1896, had feared the trade unions for years, especially the one whose members delivered the newspaper, it set up its own distribution subsidiary in 1992. In addition to the newspaper, it currently supplies around 200 publications to kiosks, bookshops and cafés. This will soon be over. According to the New York Times, the Internet and high fuel costs in particular have taken their toll on the subsidiary.
