Feb. 24 (Bloomberg) -- Hearst Corp. may sell or close the San Francisco Chronicle if the publisher can’t make cost-saving measures, including job cuts, “within weeks.”

Hearst plans to cut a “significant” number of jobs at the newspaper, which lost more than $50 million in 2008, the New York-based publisher said today in an e-mailed statement.

Frank Vega, the newspaper’s publisher, said on the Chronicle Web site he planned to continue publishing the newspaper even after the cuts are made.

“We are optimistic that we can emerge from this tough cycle with a healthy and vibrant Chronicle,” Vega said.

The Chronicle, founded in 1865, has had operating losses since at least 2001. Hearst said the loss is likely to widen this year as advertising sales continue to dwindle.

Circulation at the Chronicle fell 7.1 percent in the six months through September, according to the Audit Bureau of Circulations. It is the 12th-largest newspaper in terms of distribution.

Paul Luthringer, a Hearst spokesman in New York, declined to say in a telephone interview exactly how long the company would negotiate with the unions. Hearst will likely offer voluntary buyouts to staff members, he said.

The publisher purchased the Chronicle in 2000, Luthringer said. The newspaper has a staff of about 1,500.

On Feb. 2, Hearst introduced a redesign of the Chronicle, including reducing the number of sections and adding more coverage of dining, health and other subjects.

Hearst said Jan. 9 it may close the Seattle Post- Intelligencer, which lost $14 million last year, if it cannot find a buyer by March.

To contact the reporter on this story: Greg Bensinger in New York at gbensinger1@bloomberg.net

Last Updated: February 24, 2009 19:15 EST