The New York Times Co. reflected the economic difficulties caused by plunging advertising revenues across the newspaper industry by cutting its quarterly dividend by 74 percent from 23 cents to 6 cents a share late Thursday, MarketWatch reported.

The trust for the founding Ochs-Sulzberger family stated that even though the move was “very difficult for all shareholders, it is the appropriate and prudent business response given the extraordinary challenges of the current economic environment.” The slash is one of the company's actions that serve to “decrease debt” and optimise its liquidity, said Chairman Arthur Sulzberger.

Prior to the announcement, shares had already dropped by almost 10 percent, closing at US$5.72. The firm's stock has declined by as much as 80 percent since 2005, MarketWatch reported. In the third quarter, the New York Times Co.'s total advertising income plunged by 14 percent, while classified advertising revenues fell by 29 percent.

All shareholders who were recorded as of Dec. 1 will receive the third-quarter dividend of 6 cents a share on Dec. 15. As the situation unfolds, the New York Times Co. board reports that it will be revising its dividend policy, according to MarketWatch.