The move was expected; owner Hearst informed staff in January that the paper would close if no buyer was found in 60 days. News leaked March 7 that Hearst had begun offering positions for an online only version of the paper.

Of Seattle PI’s 167 workers, only between 20-25 have been offered work at the online only version.

The Seattle Post-Intelligencer was founded in 1863 and is Seattle’s oldest running business.

More details at Seattle PI here.

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In a memo to staff, Seattle Times Publisher Frank Blethen and company President Carolyn Kelly (as published in the Seattle Times) blamed the moves on industry changes and the global economic crisis. Both hinted in the memo that further staff cuts may occur next year: “As the 2009 budgeting process continues, there will be additional expense reductions, which may include additional layoffs.”

While print revenue has declined at the paper in line with the rapid dive reflected in the rest of the industry, the paper reported that growth in online advertising, previously a positive for the paper, has stalled due to the broader economic crisis.

According to the memo, The Seattle Times “saw average weekday circulation decline 7.7 percent to about 199,000, while [JOA partner] the Seattle Post-Intelligencer dropped 7.8 percent to about 118,000. The circulation for the Sunday paper — which bears both the Times and P-I mastheads — fell 9.1 percent to 382,000.”

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