Despite being given a $10 million job-creation subsidy by New York State, Time Inc. will still be allowed to cut over 900 jobs -- nearly one third of its positions -- with no repercussions, WNYC reported Friday.
Last year the midtown Manhattan-based media company -- which counts Time magazine, Sports Illustrated and People among its 90 brands -- was mulling a move to a smaller headquarters across the river in New Jersey.
But the state of New York responded by offering Time a $7 million grant under the World Trade Center Job Creation & Retention program and a $3 million Excelsior Jobs Program tax credit to relocate to downtown Manhattan instead.
In order to receive the $3 million tax credit, WNYC reports that Time promised to invest $150 million in new offices by the World Trade Center.
As one might expect, such programs typically require businesses to either add or retain jobs. According to documents obtained by WNYC, however, Time will be able to keep the money and cut up to 917 jobs by 2017.
“It is unusual when you see a subsidy deal like this that is going to a company where it's generally assumed they're downsizing,” Elizabeth Bird, a project coordinator at Good Jobs New York, told WNYC.
In a statement to The Huffington Post, Time Inc. elaborated on its decision to relocate to lower Manhattan, but did not address the potential job cuts.
"Time Inc. is very pleased to be staying in New York, and is looking forward to participating in the revitalization of lower Manhattan, where its main headquarters will be located for many years to come," the statement read. "While we received a compelling offer to relocate to New Jersey, the New York State Incentive Programs, including the WTC grant, combined with attractive lease terms, are keeping us in New York."
The report from WNYC is only the latest in a series of depressing headlines revolving around the media company in recent years. In 2014, as Time Inc. began to part ways with Time Warner, 500 jobs were expected to be cut. And more recently, in January, Sports Illustrated laid off all six of its remaining photographers.
This post has been updated to include a statement from Time Inc.