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Hearst Corp. said its newspapers plan to hold back at least some content from their free Web sites, launching the publisher onto the vanguard of print media companies to begin charging for their digital news and information.

“Exactly how much paid content to hold back from our free sites will be a judgment call made daily by our management, whose mission should be to run the best free Web sites in our markets without compromising our ability to get a fair price from consumers for the expensive, unique reporting and writing that we produce each day,” Steven Swartz, the president of Hearst newspapers, said in a staff memo (see full memo below).

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We wanted to share a letter from Publisher George Hearst that was sent to the Times Union staff late this afternoon:

Dear Times Union Colleagues:

It is no secret that newspapers, like other elements of the communication industry, are going through a period of unprecedented challenges. The Times Union is not exempt from those difficulties. Advertising revenues, our major source of income, have not kept pace with expenses. As a result, we need to reset the cost base of our company to better align it with our revenues.

This will not be an easy process, but we must act quickly and conscientiously to preserve what is unique and highly valued by our customers.

The Times Union management team has already undertaken many cost-cutting tactics, including a wage and hiring freeze, reduction in newsprint use, and expense containment. Those steps, along with measured payroll cuts through attrition and a generous buyout program last year, have been implemented in an attempt to make significant job cuts unnecessary. Unfortunately, the steps we have taken to date have been insufficient in light of the continued deterioration of our revenues in recent months.

As a result, over the next two months, we need to reorganize our employee base in all divisions, with a goal of reducing the operating cost of the company by 20 percent. This will require staff reductions from both unionized and non-union employees. We will continue to work with our organized labor leaders to achieve these objectives during the next several weeks.

We greatly value the work that every one of you does, and deeply regret that the very survival of our enterprise hinges upon cost-cutting that must include the departures of people who are part of this company.

With more readers than ever, and a loyal base of advertisers, we must do what is necessary to ensure that the Times Union continues to serve the Capital Region. Even in these difficult days, our restructuring will be pursued with a determination to maintain the high quality of journalism that our community has come to expect.

I understand the anxiety that this news creates and the management team will do everything possible to make this transition as smooth as possible. Thank you in advance for your patience and understanding.

Sincerely,
George