The latest: Henry Blodget's analysis: NYT finally begins to bow to reality.

Earlier: Along with cutting newsroom salaries 5%, the New York Times (NYT) cut 100 jobs on the business side of the company today. Here's the memo:

Dear Colleagues,



In a note just distributed, Arthur and Janet informed us that the company, regrettably, must take even more aggressive steps to control our costs. Clearly, our course is not getting any easier. The recession, especially the deteriorating advertising climate, is exacting a bitter toll, despite all that we have already done to reduce spending.



This morning, we notified about 100 employees on the business side of The Times that their jobs were being eliminated. We thank these dedicated colleagues for all they have contributed to The Times over the years.



The broader announcement today outlines a temporary salary reduction for the remainder of the year for all non-union employees, including the top leadership of the company. It is our hope that these cost-cutting measures will allow us to avoid further layoffs.



The details of the salary reduction will be communicated to you shortly by your senior managers. Although employee pay will be cut by 5% for the remaining three-quarters of the year, you will be entitled to 10 additional personal days off over the nine months. Next year, we plan to return salaries to their current levels. Of course, such a decision depends on the state of our business.



In addition, we will be asking that our Guild-represented colleagues make a similar sacrifice. The Company plans to discuss this with the Guild leadership this afternoon, in a spirit of shared sacrifice and as a way to otherwise avoid layoffs in the newsroom.



Navigating this difficult passage for our business has not been easy. We need to do what we can to reduce spending in the face of falling revenues. At the same time, it is vital we do everything possible to maintain the quality and reach of the journalism that is the hallmark of The Times and to support the resourcefulness and competitive edge of the Media Group's business operations.



Decisions such as today’s underscore the scale of the challenges facing us as we confront not only the structural changes reshaping our industry but also the deepening global recession.



We honor those who will no longer work alongside us and extend our gratitude to them for their contributions. Further, we want to thank every one of you who are sacrificing a portion of your pay over the remainder of the year.



Sincerely,



Scott, Bill, Martin & Andy

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