Dear Colleagues,Sure took them long enough to figure this one out. Then again, it'll take them the better part of the year to generate this revenue in terms of rental income at the same time they're paying for rent to house the newly displaced employees, plus the costs to renovate the space they're going to rent out, so the NYT will probably show a loss for the first two or three quarters of 2017.
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.
The Globe's also undergoing their own downsizing moves, so their combined appeal is becoming more selective.