New York Times Vacating 8 Floors In HQ To Generate “Significant Rental Revenue”

The New York Times is shutting down at least 8 floors of its headquarters in a bid for rental income despite publicly claiming revenue is better than ever.

Last month Donald Trump canceled an interview with the “failing New York Times” after they changed the terms of an exclusive interview with him.

trump-cancels-interview-with-the-failing-new-york-times

The times then went into full damage control mode and assured Trump the original terms were back on.

What a mistake as the Times used the interview launch a Fake News attack against Trump which was debunked once the audio transcripts of the interview was leaked.

At the same time the corporate media launch a full frontal assault claiming once again that Trump lied. They stated the NY Times was in fact not failing and instead were having a record year.

Today we learn once again, more fake news from the corporate media as NY Times has sent an internal memo to employees letting them know that they will be shutting down 8 floors of operation in their building that they hope to use to gain significant rental income.

Via Zero Hedge:

 

Remember when The NYT reported that its ad hoc campaign to boost revenue by selling subscriptions in response to the vicious back and forth with Donald Trump, was said to be a smashing success? Perhaps it was subscriptions for the crossword puzzle because it appears the monetary success was not smashing enough, and according to a just released note from executives Arthur Sulzberger and Mark Thompson, the newspaper will vacate at least eight floors in its iconic building, allowing it to “generate significant rental income” because it is “frankly, too expensive to occupy this many floors when we don’t truly need them.”

Maybe the lesson here is that when the newspaper business model no longer works, one can just pivot into a REIT?

The remaining staff will be consolidated on the remaining, redesigned floors in a “more dynamic, modern and open workplace, one that is better suited to the moment.”

Furthermore, the NYT publisher and CEO will lose their corner offices, which they call a “vestige from a different era” and will “introduce more team rooms and common spaces.”

It is unclear if NYT would distribute pink slips as part of the cost-cutting effort, however as the letter adds, “in the end, these changes will impact every employee at 620 Eighth Ave. In the near term, we will have to move about 400 employees out of the building to nearby office space while the first phase of work is completed. We expect that group, which includes parts of marketing, technology, the newsroom, news services, corporate finance and print products and services pre-press operations, to move in the first quarter and return by the end of 2017. Your manager will notify you if your position is affected by this temporary move. We understand and appreciate the disruption this will inevitably cause and we will do everything in our power to mitigate it.”

But aside from all that, subscriptions are soaring, we promise.

Full memo below:

 Dear Colleagues,

When we moved into our new building in 2007, we saw it as a modern headquarters for a modern New York Times. We still feel that way.

But as Mark mentioned in the State of The Times last month, after a good deal of consideration, we have determined that the way that we use our headquarters building needs to evolve to better match the changes you and your colleagues have been driving across every part of the company.

The current way we have configured our office makes us slower and less collaborative. It is also, frankly, too expensive to occupy this many floors when we don’t truly need them.

We’ve made the decision to consolidate our footprint across the building to create a more dynamic, modern and open workplace, one that is better suited to the moment. We’re planning significant investments in a redesign of our existing space in order to facilitate more cross-departmental collaboration.

We expect a substantial financial benefit as well. All told, we will vacate at least eight floors, allowing us to generate significant rental income.

We have engaged Gensler, an architecture and interior design firm, to help us redesign our workplace and beginning early next year, work will begin on select floors below 14. By the end of next year, we expect to have consolidated our occupancy to that side of the building. We will keep the cafeteria and the conference rooms on 15.

We have already seen that changing office layouts can lead to good results. Some of the most creative wings of the company — the Beta team, the Graphics Department and some of our technology teams have changed their floor plans to help improve the way they work.

The coming redesign will introduce more team rooms and common spaces. And, we will do away with big corner offices, like the ones you see on the 16th and 17th floors, including, yes, the publisher and CEO’s offices. We don’t need to preserve those vestiges from a different era, so we won’t.

In the end, these changes will impact every employee at 620 Eighth Ave. In the near term, we will have to move about 400 employees out of the building to nearby office space while the first phase of work is completed. We expect that group, which includes parts of marketing, technology, the newsroom, news services, corporate finance and print products and services pre-press operations, to move in the first quarter and return by the end of 2017. Your manager will notify you if your position is affected by this temporary move. We understand and appreciate the disruption this will inevitably cause and we will do everything in our power to mitigate it.

Representatives from across the company are serving on a steering committee to help us plan these changes. They will solicit input from everyone interested in providing it and we’re committed to  keeping you fully informed as the project plays out.

We will have more details soon.

Thank you.
Arthur and Mark

Perhaps Facebook’s “fact-checkers” can move into the soon to be vacant space…

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