Nation's 15th Largest Circulation Daily Losing $40M, Slashes Newsroom Jobs By 40%

October 27, 2008 2:33 p.m. EST

Newark, NJ (AHN) - New Jersey's largest newspaper will slash 40 percent of its newsroom staff before the end of the year, one of the largest single job cuts by a major United States newspaper.

The Star-Ledger is the nation's 15th largest newspaper by daily circulation figures. It faces $40 million in losses this year because of declining print advertising revenue and it needed staff buyouts and labor concessions to avoid a possible sale or closure, according to reports.

The newspaper's editor reportedly told staffers on Friday that the newspaper had accepted 151 requests for buyouts. The number of non-newsroom cuts will be announced later.

Advance Publications, owner of The Star-Ledger, had told employees that without sufficient staff buyouts and other concessions, that it would put the paper up for sale and a new owner would likely lay off employees rather than offer them buyouts.

But because the nation's economy is down, finding a buyer for the newspaper was unlikely, which made closing the newspaper more likely unless enough people accepted buyout offers.

The newspaper received more buyout acceptances than necessary, and said it turned down 17. The accepted buyouts will take effect in three stages through the end of the year.