Criticism grows for Time, Inc's "job retention" subsidy
In 2014 New York State offered a $10 million subsidy package to Time, Inc. to relocate its offices to lower Manhattan, rather than New Jersey. An opinion piece co-authored by GJNY's Elizabeth Bird and The NewsGuild of New York's president Bill O'Meara draws attention to the recurring downsizing efforts at Time Inc. The company has stated in an SEC filing that it anticipates headcount reductions and The National Labor Relations Board has said it plans to issue a complaint against the company after it implemented changes that will allow it to transfer over 150 journalists overseas. Nevertheless, the company is slated to receive over $10 million in state subsidies for relocating and retaining jobs in lower Manhattan.
A March 2015 report by WNYC examined how the bulk of the subsidy is a grant made through the Job Creation and Retention Program, originally established after 9/11 to encourage companies to stay in the area. However, according to the project materials, Time, Inc. is required to retain 2,000 employees to be in compliance with the terms of the agreement, more than 900 fewer than they currently employ.
Related news media:
Gotham Gazette [opinion], Taxpayer Payoffs for Layoffs at Time Inc. July 20, 2015
WNYC, Taxpayer Subsidy Allows Time Inc. To Slash Jobs, March 6, 2015
New York Post, Time Inc. can cut 900 jobs and still receive $7M state grant, March 6, 2015
New York Daily News, Time Inc. inks 'incentive' deal to stay in the city and relocate to Lower Manhattan, May 22, 2014
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