The
Los Angeles Times, one of the oldest journalistic institutions in the United States,
has laid off at least 115 employees, representing more than 20 percent of its newsroom workforce to address financial struggles. The newspaper described its recent mass layoffs as "one of the largest workforce reductions in the history of the 142-year-old institution."
Since biotech billionaire Dr. Patrick Soon-Shiong purchased the
Times for $500 million in 2018, it underwent significant changes and moved from downtown Los Angeles to a new location in El Segundo. Despite these changes, the paper struggled to achieve financial sustainability.
Soon-Shiong said these drastic measures were necessary as the organization
could no longer sustain annual losses ranging from $30 million to $40 million without tangible progress in increasing readership to attract advertising and subscriptions. Nearly six years after Soon-Shiong and his family acquired the
Times and the
San Diego Union-Tribune, economic challenges and the Wuhan coronavirus (COVID-19) pandemic wiped out over $60 million in advertising revenue.
"Today's decision is painful for all, but it is imperative that we act urgently and take steps to build a sustainable and thriving paper for the next generation. We are committed to doing so," Soon-Shiong said. He also informed staff that "almost a billion dollars" had been invested in the paper over the past five-plus years, despite falling short of readership, subscription or advertising goals.
The layoffs included several high-profile editors, such as Pulitzer Prize-winning journalist and Washington bureau chief Kimbriell Kelly, deputy Washington bureau chief Nick Baumann, business editor Jeff Bercovici, books editor Boris Kachka, newspaper music editor Craig Marks and Asian American communities reporter Jeong Park. The Washington Bureau and the photography and sports departments witnessed significant cuts, affecting even award-winning photographers. The video unit also faced substantial reductions.
Chris Argentieri, the president and chief operating officer of the
Times, backed the statement by Soon-Shiong.
"The economic reality of our organization is extremely challenging. Despite our owner’s willingness to continue to invest, we need to take immediate steps to improve our cash position," Argentieri said in a memo as he announced the layoffs.
The
Times is not the only media organization grappling with layoffs. The media industry has faced widespread challenges in recent years as more consumers turn to TikTok and other social media platforms for entertainment and information. (Related:
They are calling this “layoff season.”)
For instance,
Sports Illustrated suffered mass layoffs late last week;
Time magazine is reportedly undergoing cuts on the same day as the
Times; and in New York City, hundreds of
Condé Nast workers at publications such as
Vogue, Bon Appétit, Vanity Fair and others are staging a one-day walkout as their union fights for a new contract. Other established outlets, including
NBC News, ABC News, CNN, the
Washington Post and
Buzzfeed News, are also trimming their staff members.
A new study conducted by outplacement firm Challenger, Gray and Christmas found that news media outlets have
eliminated nearly 2,700 journalism jobs in 2023. The study also found that media companies have executed a staggering 20,324 job cuts in 2023.
According to the findings, 2,681 jobs have been axed within specific "news" subcategories, including positions in broadcast, digital and print media. This figure has surpassed the 1,808 cuts announced in 2022 and the 1,511 cuts recorded the year before.
A myriad of influential media companies have been compelled to take drastic measures in an attempt to streamline their operations and reduce costs amid challenging advertising conditions and a growing phenomenon of news fatigue among consumers.
Visit
EconomicRiot.com for more news related to mass layoffs caused by the impending economic collapse.
