New York Times Will Vacate 8 Floors In Its HQ To Generate "Significant Rental Revenue"

Tyler Durden's picture

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...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Voice of insanity's picture

I'll bet they make more money renting space than selling newspapers.

Life of Illusion's picture

 

ZEROHEDGE PLEASE LEASE A OFFICE SPACE IN THT BUILDING

Perimetr's picture

Russian hackers are interested in vacant space, too.

Looney's picture

 

Why not close the whole damn joint?   ;-)

Looney

Rainman's picture

that'll be next ... all 8 guys will work from home.

The Juggernaut's picture

They can’t make rent because they sold lies.

Ignatius's picture

The NYT is finding out that it just takes fewer people to transcribe and disseminate government and corporate press releases, as opposed to doing real journalism.

localsavage's picture

Who needs office space when you just copy and paste the propaganda that the AP spits out?

Ghost of Porky's picture

Carlos Slim should stick to dealing drugs. He kinda sucks at this news thing.

Ledlak's picture

No, I'm not crying. Those are tears of joy!

Manthong's picture

They could always convert the space to a positive revenue generating venue but keep the original operational purpose intact.

The space could become an 8 floor whorehouse.

Shemp 4 Victory's picture

 

The space could become an 8 floor whorehouse.

So there would essentially be no change in how the space is utilized.

ufos8mycow's picture

Trump should rent out those floors and use it as an 'office'. That way all the workers at the Times would have a couple of hours each morning going through Secret Service security checks.

Manthong's picture

The future of the NYT:

A hunchback spastic retard churning a mimeograph of copy written by a drunken metro-sexual prostitute democrat.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Manthong Dec 16, 2016 3:31 PM

FAKE "news" not selling well, NY Times?

Hmmm... Wonder why?

Maybe Facebook will redesign all pages to have half of each filed with NY Times fake news. Shove fake news down people's throats (or up their a$$es, to be more precise).

Offthebeach's picture

When I want print news I can trust, I look to Lantana, Fla.

Chris Dakota's picture
Chris Dakota (not verified) Ledlak Dec 17, 2016 12:28 AM

FAKE NEWS is why.

I never thought they would recover from Judith Miller and lying us into war in Iraq, but they did. The brainwashed left kept them going as if they agreed with that war...sheesh.

1 yr and they will be gone.

Bastiat's picture

Carlos is tired of writing those checks . . . the campaign is over, Hillary lost, and he knows when to write off a loser.

Shemp 4 Victory's picture

These 8 floors are just the beginning.

robertsgt40's picture

At this rate the NYT will be relegated to the basement. Rent the rest.

SokPOTUS's picture

Next up, their unending quest to find their missing stapler....

J S Bach's picture

I'm surprised they don't just have their cousins at the Fed write them a check to cover their terrific losses.  After all, they're on the same Team Yahweh.

xythras's picture
xythras (not verified) Ignatius Dec 16, 2016 12:39 PM

Is this what they call Safe Space?

I say pull it, 9/11 style !

Vatican_cameo's picture

 

They could open an "Adult Daycare", Safe Space for all these traumatized Liberals.  Hell, they could even serve Pizza..........

Tijuana Donkey Show's picture

Why does all of the pizza have sausage?

Never One Roach's picture

The NYT wont need any floors when they go bankrupt and shut their doors forever.

R.I.P.

The NYT hates Americans, so why should Americans read your trash.

The Management's picture

They will move in with Snopes and her 3 fucking cats.

False_Profit's picture

Corner offices are "vestiges of a different era"?

Current office layout is not as productive as a new, open floor plan will be?

The building was brand new in 2007?

Not only are they that out of touch with the news, but the millions spent on design just 15 years ago was completely wasted...

 

I bet they move the employees out and magically a passenger jet flies into it and the double their insurance money a la wtc...

Useful idiots...

SokPOTUS's picture

Word.  Who would want to have office space in such close proximity to those vermin?

Manthong's picture

I’m only waiting for them to have to sell the golden flush levers on the toilets where their opinions go just to keep the lights on.

bpj's picture

Cmon Zero Hedge lease some space from the Gray Lady

Kirk2NCC1701's picture

As an alternative, NYT reporters are now leasing space on Alt-News sites, like ZH.

Suggested handles: Hedgeless Times, Hedge Times, Hedgy, Just in Times, Justice Times, Two Timer, Z Times...

City_Of_Champyinz's picture

Damn straight, this leftist propaganda rag is on its last legs.

HockeyFool's picture

Trump should rent all 8 floors and put a bunch of Russian journalists from RT in there.

King Tut's picture

I just don't understand how all of the local news' are financially viable- ABC7 and WGN in Chicago are 35% local news shows from 11am - 10:30PM and it's the same shit every day on 5 different stations. Weather? Sports? All of that is at the tip of our fingers 24/7. I don't see millenials sitting around watching this garbage. Wouldn't it be cheaper to run Seinfeld and Raymond reruns? I guess they are kept around for the propaganda aspect.

Nekoti's picture

Their sales are down due to all the fake news the Russians keep hacking into the newspaper.

Spungo's picture

"make more money renting space than selling newspapers"

Very true. Real estate is an awesome business whereas retail is generally a shit business. I'm following a Canadian company called Empire which runs a chain of grocery stores, and their latest earnings report says they made more money from their real estate than they did from selling about $30B worth of groceries. The margin on groceries is less than 1%. The margin on real estate is more like 30-50%.

Rabbi Chaim Cohen's picture

They also could have a real future in real estate. News business? maybe not so much.

SokPOTUS's picture

But what will all the dumb kids do if there is no more need for a degree in journalism?

August's picture

The dumb kids will continue to get by doing... whatever.  It's the dumb, vain and self-righteous kids who are going to have to seek out a new career path; they could try politics, but that would be kinda scary and ego-bruising for J-school material.

UmbilicalMosqueSweeper's picture

Indoctrination pays better...and there are longterm bennies to be had from .gov.

EscapeKey's picture

the DNC might as well rent that space

yogibear's picture

The DNC might as well own it.

Make it their Americanized Pravda.

The snowflakes are gullible. 

happyfrog's picture

The Times is just going to become a REIT...

King Tut's picture
King Tut (not verified) Dec 16, 2016 12:03 PM

The obituary of the MSM is now being written

researchfix's picture

But...but...they seem quite positive about it. On the other hand, they are professional liars.

yogibear's picture

We hope and pray this happens.

But the liberals are up to something.

UmbilicalMosqueSweeper's picture

...sniffing assholes for a whiff of their new reality.