In a dramatic turn of events, shares of the New York Times plummeted by 7.7% on Monday, closing at $52.45, after the revered news outlet reported a disappointing third-quarter performance. The results disclosed a significant miss in both subscription growth and revenue, raising eyebrows among analysts just as tech workers initiated a strike just ahead of a crucial election day.

During the third quarter, the Times managed to gain only 260,000 digital-only subscribers—a figure that falls short of previous quarters and analysts' expectations. Just last quarter, they had seen an influx of 300,000 new subscribers, but the current economic climate appears to be making readers more cautious with their finances. Analysts had estimated a subs boost of approximately 280,200 for this quarter, highlighting a worrying trend in consumer willingness to pay for news.

While total revenue reported was $640.2 million, matching estimates closely, subscription revenue growth of 8.3% was still underwhelming. The Times is forecasting a modest 7% to 9% increase in subscription revenue for the fourth quarter—a projection that is slightly below the expected 8.2%.

Adding fuel to the fire, the strike by the 600-member Tech Guild began early Monday morning, raising concerns about potential disruptions to the site’s functionality right on Election Day. AG Sulzberger, the publisher and chairman, mentioned that they had plans in place to maintain essential journalism, but the timing of the labor dispute could not be worse given the heightened public interest in election coverage.

This labor action stems from over two years of contentious negotiations over labor conditions, including demands for job security for non-citizens on work visas and the implementation of audio trigger warnings during meetings concerning sensitive news topics. Tech Guild president Susan DeCarava expressed frustration, stating that the Times is neglecting its responsibility to uphold a fair contract at such a crucial time.

The striking tech workers—among the highest-paid employees at the Times with annual salaries averaging $190,000—are advocating for substantial reforms, including a "just cause" provision to guard against arbitrary terminations, pay equality improvements for women and minorities, and increased options for full-time remote work.

Want to know the company’s counter-offer? Management proposed a modest 2.5% annual wage increase and a $1,000 ratification bonus, along with a commitment to maintain its current hybrid work model requiring at least two days of in-office work weekly until June 2025.

In a statement, management acknowledged the significance of "just cause" provisions but insisted that it should ultimately be at their discretion to define these terms, not third-party intervention.

The ongoing challenges the New York Times faces mirror broader trends in the media industry, where digital subscriptions are becoming increasingly difficult to secure in a world of rising inflation and competing free content. What’s next for this iconic publication? Will it weather this storm? Stay tuned for the latest updates!