*Hearst may close Chronicle

That's the threat anyway. The media giant says that "significant" cuts will be needed in order to meet near-term cost savings. Translation: job cuts. Hearst adds that if the savings cannot be accomplished "quickly" the company will seek a buyer, and if none comes forward, the SF Chronicle will be closed. The paper lost more than $50 million in 2008 and is on a pace to lose more than that this year. From the Chronicle story:

The company did not specify the size of the staff reductions or the nature of the other cost-savings measures it has in mind. The company said it will immediately seek discussions with the Northern California Media Workers Guild, Local 39521, and the International Brotherhood of Teamsters, Local 853, which represent the majority of workers at the Chronicle. "Because of the sea change newspapers everywhere are undergoing and these dire economic times, it is essential that our management and the local union leadership work together to implement the changes necessary to bring the cost of producing the Chronicle into line with available revenue," Frank A. Bennack, Jr., Hearst vice chairman and chief executive, and Steven R. Swartz, president of Hearst Newspapers, said in a joint statement.

The Chronicle already has gone through a bunch of cuts; the paper now has a news staff of about 275. Privately held Hearst is notoriously tight-lipped when it comes to financial results, so it might be hard for the unions and others to determine just how serious the situation might be. While pulling the plug on such a high-profile publication seems unlikely, the fact that's it's even being mentioned is hair-raising.

*Here's more from the WSJ:

Observers have been waiting to see which major U.S. city will be the first to be without a daily newspaper, and San Francisco isn't a surprising front-runner for the role. Unlike many major newspaper chains, Hearst has a healthy balance sheet, but the company said the Chronicle has posted significant losses since 2001, including a $50 million loss last year. People familiar with the company have said Hearst Chief Executive Frank Bennack, who took over last summer after his predecessor was forced out, is impatient with some of the company's struggling businesses, particularly the Chronicle. Hearst also may close its Seattle Post-Intelligencer newspaper next month unless it can find a buyer. Hearst announced in January it will close the Seattle paper or convert it to an online-only publication if a buyer can't be found in two months.