Newsweek loses $28.1 million in 2009

Ascheim said that he expected losses in 2009, but the situation was made worse by the economy.

“The fourth quarter was actually our best quarter of the year as we repositioned to a more upscale, news-hungry audience,” he said. “We expect to have significantly smaller losses in 2010 than in 2009 and we still expect to be back to break-even in 2011.”…

Since Newsweek lowered its circulation — from 2.6 million to 1.5 million — it was forced to make corresponding cuts in its ad rates. The company hopes that lower production, distribution and employee costs will eventually enable it to return to profitability.