Hearst Corporation said that it would be forced close or sell The San Francisco Chronicle unless it could get concessions from its unions. The Chronicle has already lost more than $50 million in 2008. It us feared that the financial situation could be worse during the current year. This has become a trend with the company since 2001. 

"Without the specific changes we are seeking across the entire Chronicle organization, we will have no choice but to quickly seek a buyer for The Chronicle or, should a buyer not be found, to shut the newspaper down," said a statement by Frank A. Bennack Jr., Hearst's vice chairman and chief executive, and Steven R. Swartz, president of its newspaper division. 

The management has made it clear that the cost-cutting measures including a significant number of layoffs it would have to initiate. The company might slash other expenses in a last-ditch effort to reverse years of heavy losses. 

Since 2006, newspaper advertising revenue has plummeted. The Chronicle has also signed a contract to outsource printing and explored selling its building.