New York Times to Slash Pay, Jobs

Updated from 4:43 p.m. EDT

The New York Times(NYT Quote) on Thursday announced cost-cutting plans that include layoffs and 5% pay cuts in exchange for 10 days' leave.

The pay cuts, which would last from April through December, would affect most nonunion employees, including executives, at The New York Times, The Boston Globe, and in the company's corporate division, according to the Times' Web site.

Roughly 100 jobs also will be cut, the company said, representing nearly 5% of the employees in Times' business operations.

Also Thursday, The Washington Post(WPO Quote) announced another round of buyouts. According to The Associated Press, Publisher Katharine Weymouth did not specify the target number for the buyouts, but she did say the company seeks to reduce production jobs. As newspaper employees know all too well by this point, if not enough people take the buyout offer, layoffs may be necessary.

New York Times shares closed Thursday up 9% to $4.98. Washington Post added 1.8% to $384.28. Rival Gannett (GCI Quote) closed up 6.4% to $2.51. McClatchy(MNI Quote) rose 14.3% to 72 cents. And A.H. Belo(AHC Quote) rose 13.1% to $1.12.