To cut costs and try to adapt to a changing marketplace, the company will trim 25 percent of its staff by the end of the summer.
‘This is one of the biggest one-time hits we’ve heard about anywhere in the country,’ said Tom Rosenstiel, director of an industry-watching think tank in Washington. ‘That’s not just trimming fat, that’s an amputation. That’s like losing a limb,’ added Rosenstiel.
CEO Frank Vega declined to say whether the company is continuing to lose $1 million a week, as attorney Daniel Wall stated in court in November during a hearing on an antitrust lawsuit filed against the firm. ‘It’s fairly common knowledge that we have had a tough financial row here for several years. As we continue to evaluate our situation, unfortunately continued belt-tightening is necessary.’
Pretty grim, huh?
But those are the grim realities of working for a newspaper like the San Francisco Chronicle.