SAN FRANCISCO -- There are concerns the San Francisco Chronicle may not survive the current recession after a Tuesday announcement by the Hearst Corporation that losses could force the paper to be sold or shut down.

Hearst told Chronicle staff Tuesday that the paper is showing "staggering losses." Hearst says it needs to lay off people in all departments of the newspaper.

If the cuts don't stop the bleeding, Hearst said the Chronicle will be sold or shut down.

Chronicle management was meeting with union staff representatives Wednesday afternoon in order to try to craft a deal aimed at meeting Hearst's demands.

The San Francisco Chronicle was born in 1865, a product of the gold rush. It has long been a Bay Area institution.

But the Chronicle says it lost $50 million last year and needs to make deep cuts to survive.

At a hastily called news conference Tuesday afternoon, Chronicle executives said they will have to make drastic cuts to keep the paper operating. Without them, there's a very real chance the Chronicle could cease to exist.

"It has endured earthquakes, fires and other calamities as San Francisco's newspaper. It has always survived," said Chronicle Editor and Vice President Ward Bushee. "Nevertheless the Chron is also a business. Like any other business, it must live within its means. But it has not."

The Chronicle has endured a series of layoffs in recent years. It's not clear how many workers will lose their jobs this time, but that decision will come soon.

"We're talking about days and weeks to get this done. We're not talking about months," said Chronicle President Mark Adkins. "I don't think I'm safe and I don't feel like anyone in that newsroom feels like they're safe."

Veteran Chronicle columnist Chuck Nevius described the mood in the newsroom as grim.

"I'm concerned and discouraged and disappointed that we've worked so hard to put out a really good product and it's not working," said Nevius."But at the same time, we know this is happening around the country. We're not alone."

It's already happened in Seattle. Hearst announced last month that it is trying to sell the Seattle Post-Intelligencer and will close it if a buyer is not found.

Chronicle union leaders will meet with management Wednesday to discuss cost cutting and how to keep the paper afloat.

"It's a dire situation. It's a scary situation," said Michelle Devera of the California Media Workers Guild What are you going to do?"

Across the street, the owner of a diner called Little Joe's could not only lose his daily paper, but his lunch customers from the Chronicle Building.

"It's my business to serve them. It's a part of San Francisco," said Frank Modarello.

Bay Area residents expressed their dismay at the news.

"There'd be no newspaper here," said Sausalito's Jeff Bernstein. "How can you have a major city without a newspaper?"

"I like the columns by Nevius and Johnson and the City Insider," said Tiburon resident Marie Jorajuria. "I thought that was a pretty good addition, so that would be kind of a shame to lose."

Chronicle management says if their reorganization works, the paper will survive.

"We are playing to win and I think we will," said Bushee.