San Francisco Chronicle Cutting Costs

To stay afloat, the San Francisco Chronicle has had to quickly find ways to save money. As part of that endeavor, the newspaper came to a new agreement with their largest labor union. Without the agreement, the San Francisco Chronicle was expected to lose more than $50 million in 2009.

Image: sxc.hu

Under the new agreement, the union is preparing for 150 of their 500 jobs to be lost. Additionally, vacations will be limited, the workers will be asked to be on the job for longer hours and the newspaper will be able to pick and choose who will be let go. In exchange, the union workers will receive better severance packages.

Financial trouble for the San Francisco Chronicle is nothing new. Last year, the company was in the red for more than $45 million. With the economic climate worsening, the newspaper could have been forced to close without a new labor agreement.

Dozens upon dozens of newspapers around the United States have gone out of business. Not only is the economy blamed, but so has the advancement of the internet. With more and more readers turning to bloggers and other online websites for their news, newspapers are struggling to find a lucrative niche.