• All Things Digital, Friday, February 20, 2009 9:45 AM

The New York Times Co. said Thursday it is suspending its quarterly dividend in a move to preserve cash, as ad spending continues to decline. The suspension of the payout comes after the company slashed its dividend to 6 cents from 23 cents in November.

"The decision provides the company with additional financial flexibility given the uncertain business outlook," says Arthur Sulzberger, Jr., chairman. That's tough news for the Sulzberger clan, which has been living quite well off the Times' dividend for a long time. And it is a sign that the paper's cash crunch hasn't been eased just because it was able to secure a high-interest loan from Carlos Slim last month.
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In January, the Times company, which publishes the NYT, Boston Globe, the International Herald Tribune and 16 other daily newspapers, said its fourth-quarter earnings plunged 48% and online sales fell for the first time. The results still beat analyst estimates. As of last fall, the paper was insisting that it wouldn't lay off any of its 1,300 newsroom employees. But things have only declined since then.

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