Cityfile: New York's Most Notable and Influential

• The cuts continue at Time Inc. Fortune Small Business was shuttered today. And as many as 500 employees may lose their jobs when all is said and done. Meanwhile, parent company Time Warner reported a drop in revenues and earnings in the third quarter, as expected. [NYT, WWD, AdAge, NYP]
• Profits were up at News Corp. thanks to its film, cable, and book units. [BN]
• The publisher of Marie Claire has jumped over to Vogue. [NYO]
• Fox News came out on top in the ratings with its election night coverage. CNN performed miserably, dropping down to fourth place. [NYT, Politico]
• WNET is giving employees off between Christmas and New Year's. It's not to be nice; it's designed to cut costs since the days off are unpaid. [Crain's]
• A theory as to why Tom McGeveran quit the Observer. [Daily Intel]
• Highlights from last weekend's Tribeca Film Festival, Doha edition. [Vulture] More

• Polo Ralph Lauren has been hit with a lawsuit for stamping the word "lifeguard" on clothing without permission. Another company is claiming it trademarked the word years ago. [NYP]
• As expected, Escada filed for bankruptcy protection in a German court today. [Bloomberg]
• Is Bravo renewing The Fashion Show for a second season? That's unclear for the time being. [Cut]
• Tory Burch and Georgina Chapman are making cameos on the next season of Gossip Girl. [WWD]
• Now that visiting a tanning a salon is tantamount to sucking on asbestos or consuming toxic nuclear waste, is "pale the new tan"? [NYT]More

• How does he find the time? It looks like Jon Gosselin has dumped his girlfriend from five minutes ago and is now focusing his attention on Star reporter Kate Major. (For this week, at least.) In what sounds like the most nausea-inducing meal ever, Gosselin and Major had dinner in the Hamptons last night with Michael Lohan and Jill and Bobby Zarin. [People, Star, Us]
• Rumor has it Gossip Girl's Jessica Szohr and Ed Westwick have split up. [P6]
• Jude Law got into a scuffle with a paparazzo last night. [Sun]
• Mischa Barton's publicist has been busy trying to land the troubled actress the cover of a weekly tabloid. Sadly, there have been no takers so far. [P6] More

• Kate Moss is teaming up with Topshop boss Philip Green and Simon Cowell to launch an entertainment conglomerate that will "rival Disney." At least that's what one British newspaper is reporting. [Daily Mail]
• Sad: Escada may be forced to file for bankruptcy in the near future. [Vogue UK, Fashionista]
• Sadder: Jon Gosselin may be teaming up with Christian Audigier to launch a kids' clothing line. [E!] 
• Saddest: The rumor floating around Moscow is that Pop editor/It girl Dasha Zhukova and her billionaire boyfriend, Roman Abramovich, have gone their separate ways. [FWD] More

• First Michael Jackson dies, and now this? It seems it's over for Tinsley Mortimer and her husband, Topper, now that Tinz is in London where she's taken up with a German prince named Casimir Wittgenstein-Sayn. Why the change of heart? For starters, "Cassie" makes more money than Topper and owns a castle in Germany. Even more importantly, marrying him would finally make the Tinz a princess. And opportunities like that don't come along every day, naturally. [P6, DM]
• Bradley Cooper denied rumors the other day that he's been dating Jennifer Aniston. One possible reason for that: It looks like he's involved with Renee Zellweger instead. [P6]
• Kevin Jonas is engaged. He's one of those annoying Jonas Brothers, in case you're not up to speed on your annoying teen pop stars. [People]
• A few years ago, someone walking through the meatpacking district would have complained about the stench of rotting meat. Nowadays? They're whining that Diane von Furstenberg's store is pumping perfume into the air. [P6] More

• American Idol's finale scored its lowest ratings ever for the 18-49 demo. Not that there's a chance Ryan Seacrest will be disappearing anytime soon. [THR]
• The CW has unveiled its fall lineup. As expected, the Gossip Girl spin-off isn't happening. A social media-centric ad campaign, however, is. [Variety, NYT]
• New York magazine is raising subscription rates. [Folio]
• Google is reorganizing its ad sales team and cutting a few jobs. [WSJ]
• Thanks to the $75K speaking fee Tom Friedman accepted (and returned), Times staffers have been reminded about the paper's ethics guidelines. [LAT]
• Paste Magazine hopes to survive by asking readers for donations. [Gawker]
• Former Illinois Gov. Rod Blagojevich wasn't permitted to appear on NBC's I'm a Celebrity... Get Me Out of Here!, so his wife will do it instead. [THR]

Just What You Wanted to Do Today | If you're a Gossip Girl fan and you have no objection to spending your Friday afternoon in a sea of teenage girls at a mall in New Jersey, you may want to take note of this: "Gossip Girl cast member Jessica Szohr will be appearing at the Mall at Short Hills, Short Hills NJ today at 5pm! Come meet Jessica, Teen Vogue Editor-in-Chief Amy Astley and designer Vivienne Tam! The Teen Vogue Haute Spot is a concept retail store in the Mall at Short Hills. It's a place for girls to interact with various brands and themselves! See the hottest looks for Prom and test out the latest technology from HP including Vivienne Tam digital clutches and touch screen computers. Plus win a free HP digital clutch computer!" 

Good news for those of you who have friends visiting from out of town who also happen to be obsessed with Gossip Girl. On Location Tours, the company responsible for taking tourists from Des Moines to see Carrie Bradshaw's apartment from Sex and the City and the stomping grounds of the cast of The Sopranos, is now accepting reservations for its Gossip Girls tour. More

• Rachel Roy has a new line—and it's one even her soon-to-be ex-husband should be able to afford: Roy is introducing a lower-priced collection for Macy's that she's named Rachel-Rachel Roy. [Shophound]
• Besties Shoshanna Lonstein Gruss and Charlotte Ronson are teaming up on a line called Shoshanna Made With Love Charlotte Ronson. [WWD]
• What does Karl Lagerfeld look like the morning? He'll fill you in: "I look like a madman, like something out of a horror movie!" [Fashionologie]
• "Bread-line chic" is all the rage these days. [NYT]More

• And you were thinking Naomi Campbell was devoid of sympathy and compassion. The supermodel has been all over Mumbai's Lakmé Fashion Week, where she's raising money for victims of last year's terrorist attacks. [SF]
• Vera Wang's Lavender label may be in trouble now that Bergdorf Goodman and Saks Fifth Avenue appear to be dropping the line for spring. [NYM]
• Sketches of Gwyneth Paltrow's collection with French label ZOEtee—"a mélange of Seventies glamour, rock inspiration and men's casual suiting"—are now available for your viewing pleasure. [WWD]
• Anna Wintour was in Miami to see Roger Federer this past weekend. [FWD]More

• Got an idea for how Arthur Sulzberger Jr. might be able to rescue the struggling New York Times? He now says he'll "consider anything." [NYO] 
• Hachette plans to leave Midtown for cheaper space near Wall Street. [NYP]
• Josh Schwartz is finishing the pilot for an as-yet-untitled Gossip Girl spin-off that will be tied into GG's season finale on May 11.  [NYO]
• Depressing: The story of the 55-year-old former TV Guide editor who is now an unpaid intern—yes, unpaid intern—at wowOwow.com. [LAT]
• Why did Jon Stewart go off on Rick Santelli? An unnamed "on-air host" claims Stewart is "bizarrely obsessed with" with the CNBC reporter. [Dealbreaker]
• Speaking of Stewart, Slate's The Big Money would like you remind you that Jon Stewart is not actually a journalist. Yea, thanks for that. [TBM]

• President Obama's first Congressional address drew in 33.6 million viewers last night, according to preliminary figures from Nielsen. [ML]
• It was Chris Matthews who muttered "Oh, God" on MSNBC last night, right when Bobby Jindal was about to deliver the Republican response. [Politico]
• Fourth-quarter profit declined 77 percent at the Washington Post Co. [NYT]
• Remember the DABA Girls? Yea, well, much of what they told the Times was BS, which is why the paper issued a correction today. [Newsweek, NYT]
• The CW has renewed a bunch of shows, including 90210, Smallville, America's Next Top Model, and—most importantly—Gossip Girl. [Variety]
• Ex-Domino editor Deborah Needleman is "spending more time at the gym" in order to acquire "one of those Connecticut-housewife bodies," FYI. [MM]
• Jared Kushner may be cutting a deal to sell the Observer at Starbucks. [NYP] 

• Arthur Sulzberger Jr. and his new girlfriend, Helen May, first met during an Outward Bound trip to Machu Picchu in 2005, according to May's husband, Kevin Ward. "I'm just sorry my wife didn't find someone more substantial. There's way less there than meets the eye." [P6]
• Etta James says she "didn't really mean" the stuff about Beyonce; she's still "miffed" at Obama for not inviting her to the inauguration. [NYDN]
• Kelly Cutrone inked a deal with Bravo for a new reality show. [P6]
• Russell Simmons is reportedly dating model Julie Henderson. [NYDN]More

Gossip Girl to Invade East 55th Street on Friday | If you're a Gossip Girl fan and you have nothing to do on Friday, head over to The Milan at 300 East 55th Street. The show will be filming there from 11:30am to 8:30pm. If you live in the Milan, on the other hand, you might want to stay as far away as possible. According to an email sent to residents by the management company yesterday, "one of the scenes will include up to 80 background actors located just outside the front door" and "access into and out of the building from the front door will be prohibited." And if you make it inside, do note the following: "One of the final scenes will be set near the elevators and will require the temporary holding of pedestrian traffic into and out of the elevators." The full email is below.More

• Kate Moss has been telling friends that she wants to branch out into acting so she can become a "Hollywood star," and that she's already lined up an agent in New York. [Showbiz Spy]
• Michael Phelps has issued an apology after photos appeared this weekend in the News of the World showing him smoking weed. [NYP, NOTW]
• Bernie Madoff's grandkids are considering changing their last names. [P6]
• John Thain was hardly the first or the last: Clive Davis, Martin Bandier, and Rolf Schmidt-Holtz have all spent obscene amounts in recent years to redecorate their offices, too. [R&M]
• Despite the fact her magazine is losing millions and has laid off dozens, Portfolio's Joanne Lipman insisted on flying first class to Davos. [P6]More