Summery

Perez-Pena R. (2009, April 3). Times Co. Said to Consider Closing Boston Globe. The New York Times. Retrieved April 4, 2009 from http://www.nytimes.com

This article said that The New York Times Company threatened to end The Boston Globe if its labor union refused the diminishing payment and pension because The New York Times suffered a great loss from The Boston Globe. Although the executives of The New York Times Company rejected commenting about relevant information, it seems that this issue had been discussed for several times.

Actually, in 1990s’, The Boston Globe was a very profitable company and received around one billion dollars in 1993. However, recently, the substantial declining of the amount of advertisements and the harsh situation in that area leaded this company to the downturn, though it claimed that the newspaper circulation was still good last year. As a result, the revenue dropped near 17%. Therefore, The New York Times Company wanted to regulate other costs to sustain the business by cutting 5% payment to its employees and terminating several specific employees’ lifetime job guarantees. Moreover, it was starting to sell its asset and borrow money to obtain cash in order to pass this crisis.

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