The Associated Press is losing several large contracts for its news service beginning next month.
Producing news is expensive
The old gray lady, (New York Times) is also showing signs of having to cut news production costs. This month, Jill Abramson, executive editor of The Times, asked 30 non-union managers to accept buyout packages.
In an open letter to the staff, Abramson, said that the paper had been reducing as many newsroom expenses as possible, such as dropping leases on foreign and national bureaus. But simultaneously with those cuts, the Times hired additional editors in an attempt to increase its online competitiveness. The news staff grew to the same size it was in 2003 — about 1,150 people. “… the hard news is that the size of the newsroom staff must be reduced,” said Abramson.
Two weeks ago, the News Corp. shuttered its ambitious tablet newspaper, The Daily, after only two years.
"As part of a digital restructuring initiative, the company will cease standalone publication of The Daily iPad app on December 15, 2012, though the brand will live on in other channels,” said the company’s press release. “Technology and other assets from The Daily, including some staff, will be folded into The Post."
Media watchers said the less than two-year old electronic pub was losing $30 million a year. In July, the title laid off 50 people from its staff of 170.