NY Times raises price and cuts costs

After reporting a drop in net income for the second quarter, the New York Times Co. also announced it would raise the price of its flagship newspaper The New York Times. The price of the daily newspaper will increase to US$1.50 from US$1.25, the company’s president and CEO announced in a conference call with analysts. The Times‘ report on the earnings said:

While revenue fell below analysts’ expectations, so did expenses. The
company said it would exceed the goal set last year of cutting annual
costs by $230 million by the end of 2008. It signaled that the cost of
staff reductions would be greater than previously anticipated,
predicting buyout costs in the second half of $40 million to $50
million, up from the earlier estimate of $30 million to $35 million.

Meanwhile, the company is planning to combat falling revenue with further cost cutting. This includes further outsourcing and “production efficiencies.”

The price increase for the print version of the Times comes not long after The Wall Street Journal raised its cover price to US$2.00 from US$1.50. 

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