The company today announced plans to reduce its newsroom staff by eight percent by the end of 2009. Cuts will be made by buyout, but the company will resort to layoffs should its hand be forced.

“As before, if we do not reach 100 positions through buyouts, we will be forced to go to layoffs,” New York Times Executive Editor Bill Keller wrote in a note to employees. I hope that won’t happen, but it might. I won’t pretend that these staff cuts will not add to the burdens of journalists whose responsibilities have grown faster than their compensation. Like you, I yearn for the day when we can do our jobs without looking over our shoulders for economic thunderstorms.”

Sad, sad news for a storied newspaper and an imperiled industry.

Keller’s memo in full, below:

Colleagues,

I had planned to invite you to the newsroom and break this news in person today, but I’ve been hit by something that seems to be the flu. Though I strongly believe in delivering bad news in person, I don’t want to add insult to injury by spreading infection.

Let me cut to the chase: We have been told to reduce the newsroom by 100 positions between now and the end of the year.

We hope to accomplish this by offering voluntary buyouts. On Thursday, the Company will be sending buyout offers to everyone in the newsroom. Getting a buyout package does NOT mean we want you to leave. It is simply easier to send the envelopes to everyone. If you think a buyout may be right for you, you have up to 45 days to decide whether you will accept it or not.

As before, if we do not reach 100 positions through buyouts, we will be forced to go to layoffs. I hope that won’t happen, but it might.

Our colleagues in editorial and op-ed, and on the business side, also face another round of budget cuts.

In recent years, we’ve managed to avoid the disabling cutbacks that have hit other newsrooms. The Company has chosen to protect the journalism by cutting production and other business-side costs, and the newsroom itself has managed its resources frugally. These latest cuts will still leave us with the largest, strongest and most ambitious editorial staff of any newsroom in the country, if not the world.

I won’t pretend that these staff cuts will not add to the burdens of journalists whose responsibilities have grown faster than their compensation. But we’ve been looking hard at ways to minimize the impact–in part, by re-engineering some of our copy flow. I won’t promise this will be easy or painless, but I believe we can weather these cuts without seriously compromising our commitment to coverage of the region, the country and the world. We will remain the single best news organization on earth.

I doubt that anyone is shocked by the fact of this, but it is happening sooner than anyone anticipated. When we took our 5 percent pay cuts, it was in the hope that this would fend off the need for more staff cuts this year. But I accept that if it’s going to happen, it should be done quickly. We will get through this and move on.

In my absence, Bill Schmidt and John and Jill have volunteered to take your questions this afternoon. Feel free to bring additional questions to me as soon as I’m back, or check with Bill Schmidt or John or Jill privately, or save them for the next Throw Stuff at Bill session, which is in a couple of weeks.

We often–and rightly–voice our gratitude that we work for a company and a family that prize quality journalism above all. I hope you know that the company and the family, and I, feel an equal debt of gratitude to all of you whose sacrifice and loyalty have kept us strong.

Like you, I yearn for the day when we can do our jobs without looking over our shoulders for economic thunderstorms.

Bill

CAPTCHA, for those of you just joining us, stands for Completely Automated Public Turing test to tell Computers and Humans Apart. Essentially, it’s a challenge-response test used to distinguish between humans and spam-spewing robots. What’s interesting about reCAPTCHA’s implementation is that it’s used for digitizing books.

“Since computers have trouble reading squiggly words like these, CAPTCHAs are designed to allow humans in but prevent malicious programs from scalping tickets or obtain millions of email accounts for spamming,” Google explains in a post to the company blog. “But there’s a twist–the words in many of the CAPTCHAs provided by reCAPTCHA come from scanned archival newspapers and old books. Computers find it hard to recognize these words because the ink and paper have degraded over time, but by typing them in as a CAPTCHA, crowds teach computers to read the scanned text.”

An ingenious idea, crowdsourcing book transcriptions in this way. An effective one too: reCAPTCHA boasts 99.5 percent accuracy at the word level.

Little wonder, then, that Google (GOOG) has acquired it. The company can clearly put reCaptcha’s technology to good use, not just as a security measure, but as a means of improving its own massive book-scanning project.

“I don’t think that’s likely. We’re looking and talking to a lot of laboratories and big companies around the world, like Sony and Samsung. We’re all working on wireless readers for books or newspapers or for magazines. I think they’re a year or two away being marketed in a mass way, high quality ones, and we’ll be absolutely neutral. We’re happy to have our products distributed over any device provided it’s only going to subscribers paying for it.”

— Rupert Murdoch says News Corp. isn’t working on a Kindle of its own

After its official unveiling on Feb. 9, the e-book reader started shipping on Monday, and actually managed to grab much–but not all–of the hype that’s surrounded Twitter of late. The device has been met with much acclaim, though it’s by no means unanimous. Jeff Bezos made an appearance on “The Daily Show” Monday night to make his pitch to an as-yet unimpressed Jon Stewart. His main sell? “We’d make it cheaper if we could.” Roy Blount Jr., President of the Authors Guild, isn’t thrilled about the Kindle either, but his objection isn’t price–it’s that he believes the text-to-speech feature on the device threatens the audio book market. Rather than engaging in battle with the Guild, Amazon (AMZN) decided to modify the Kindle’s software to make text-to-speech optional. Meanwhile, the Hearst Corporation announced development of its own “Kindle Kopy” aimed at capturing the newspaper and magazine market. The Kindle 2 itself has been shipping for just a week and it’s already gotten some print media looking over its shoulder. It remains to be seen, though, whether it’ll earn the moniker of “iPod for books.” Walt Mossberg’s comprehensive review of the device this week provided a glimpse into its actual pros and cons and some insight into the Kindle hubbub from a hands-on perspective.

Elsewhere, much of the news this week was about reorganizations in the digital space. BoomTown covered the much-anticipated Yahoo (YHOO) reorg, which was sketched out by CEO Carol Bartz for employees first in a post to the company blog, then elaborated upon in not one, but two, internal memos. Even BoomTown’s attention began to wander there toward the end. Must’ve been something in the water this week, because Time Warner’s (TWX) AOL kicked in a little reorganization of its own–CEO Randy Falco announced that Maneesh Dhir, head of AOL International, would be leaving the company and returning to his entrepreneurial roots, and ad head Greg Coleman announced a reshuffling of his own group. Over at News Corp. (NWS), upon official announcement of President and COO Peter Chernin’s departure, CEO Rupert Murdoch alluded to a reorg sometime in the future, and an immediate commitment to “streamlining” the business.

In Mossberg’s Mailbox this week, Walt answered questions about transferring data to an iPhone, giving Vista a dedicated graphics card, and using TrueSwitch to transfer email accounts when switching ISPs. And in the Mossberg Solution, Katie Boehret took a look at the ways different mobile companies back up your data and give you access to it.

More next week.

Rumor has it there are big games going on this weekend–at least one of which involves football players. The rest involve the usual players, though they might appear in different positions–and on different teams–from week to week. These games, most likely, will continue through Monday and beyond. Scores will be kept on an ongoing basis.

BoomTown wrote this week about a new game of tag taking Facebook by storm. Whether or not you’ve written a list of “25 Random Things” about yourself, you’ve likely read a few. BoomTown only gave up five, but they’re good ones. On defense, AOL announced it would lay off 10 percent of its workforce due to the overall ad meltdown; CEO Randy Falco’s memo to his troops is here. And whether or not AOL has buyer’s remorse over last year’s $850 million acquisition of Bebo, the company is not considering putting the social network up for sale.
BoomTown followed the tough love approach of Yahoo’s (YHOO) new CEO Carol Bartz, and liveblogged the company’s fourth-quarter earnings call, during which Bartz insisted (without mentioning Microsoft) that she wasn’t brought to Yahoo to sell the company. She also shared some canny-folksy wisdom–in the form of a chicken metaphor–about the value of the company as a whole, but it’s still a little early in the game to call that one. Of course, BoomTown had a few opinions about the unspoken Microsoft (MSFT) scenario.

Over at Digital Daily, there was a lot to be said about smartphones. Apple’s (AAPL) so-called “iPhone patent,” which would cover much of the Palm (PALM) Pre’s multitouch and gesture interface, has the potential to be a huge game changer in that race, if it’s upheld. And as if Palm doesn’t have enough to worry about, Sprint (S)–its exclusive carrier for the Pre–is rumored to be preparing to lay off 14 percent of its workforce in March, when the phone is expected to launch. Elsewhere in that contest, it turns out that Research in Motion’s (RIMM) BlackBerry Storm, which was largely panned by critics, is actually selling at a decent clip–one million so far in the U.S. No iPhone, but still, it could be worse. As Digital Daily noted, Dell (DELL) is said to be readying two phones to enter the market dominated by the iPhone, BlackBerry, and soon the Pre: one an iPhone-like Windows Mobile device, and the other a Pre-like Android device. Both could launch as soon as February, but greatness is not anticipated. Digital Daily also kept the tech job-cut score, which increased 74.2 percent from 2007 to 2008. Here’s a roundup of some of those affected.

MediaMemo had some interesting numbers to share: While Obama’s Inauguration was indeed a big day for Web video, it wasn’t as huge as some estimated. Exact numbers are impossible to measure, of course, but roughly 13 million people watched the ceremony online, while roughly 38 million watched on television. On an ongoing (and presumably growing) basis, though, numbers suggest that almost 20 percent of Netflix’s (NFLX) subscribers are using the company’s streaming service to watch movies online. That should increasingly morph back into the world of television as the company’s technology makes it simpler to stream directly to a set-linked device. In the world of print, things continue to look grim. Time Warner’s (TWX) Time Inc., in a standoff with its distributor, which upped its price by seven cents per magazine–has announced it will take its business elsewhere as of Feb. 1. If this is a game of chicken, it’s anybody’s guess who’ll win. And Time Inc.’s Ann Moore received a lifetime achievement award from the magazine industry’s trade group on Thursday. In her acceptance speech, she expressed her belief in the power of magazines and print advertising and her gratitude in the fact that she’s not in the newspaper business.

In Personal Technology this week, Walt Mossberg reviewed iLife ’09–specifically iPhoto, GarageBand and iMovie, with mixed results. In Mossberg’s Mailbox, it was all about Windows 7: Whether it requires new drivers, how it stacks up to XP, and how upgrades from XP and Vista compare with each another. Katherine Boehret reviewed the BlackBerry Curve 8900 in the Mossberg Solution, and liked it.

More next week.

Of the 1,489 adults surveyed by Pew, 40 percent identified the Internet as their primary source for national and international news. Thirty-five percent identified newspapers and 70 percent identified television.

And that’s not all that surprising, is it?

Indeed, given the big news stories of 2008–the presidential election, the econalypse–it’s surprising the Internet didn’t skew even higher in the survey results simply because of people monitoring the presidential campaign or monomaniacally tracking the stock market’s plunge into the abyss. Of course, it will continue to skew higher in the years to come, and markedly so as the ink-and-paper generation declines and the keyboard-and-browser generation continues to rise. But it will be the newspapers driving that change because often, it’s their original reporting that we find ourselves reading on the Web. As one commenter noted over at News.com, “Newspapers are the assignment desks for broadcast and Web media outlets. Who is going to perform the basic grunt work of journalism after the newspapers are gone?”

Conduct the same experiment today and the results would be much different. Newmark’s name and photo would almost certainly be recognized, and perhaps met with brief attacks of intense terror and apprehension as well. After all, Craigslist has been eating the newspaper industry’s lunch for quite a few years now, just as the broader Internet has been eating its breakfast, dinner and midafternoon pudding cup as well. And neither are leaving much in the way of crumbs as recent metrics show.

Newspaper advertising revenues, which fell almost 8% last year, have fallen another 12% since then, and company reports suggest they will fall 15% more in the next few months. Seems the Internet, which has been siphoning away the newspaper industry’s ad revenue and fragmenting its audience, has bled it to near desanguination.

“Never in my most bearish dreams six months ago did I think we’d be talking about negative 15% numbers against weak comps,” said Goldman Sachs (GS) analyst Peter S. Appert. “I think the probability is very high that there will be a number of examples of individual newspapers and newspaper companies that fall into a loss position. And I think it’s inevitable that there will be closures in this industry, and maybe bankruptcies.”