Media in bad trouble

Axios - Nearly a dozen mainstream media companies are gutting staff and scrambling to rescue their struggling businesses. The media business is shrinking at the national, state and local levels — a scary, stark new reality for thousands of journalists. Media cuts were so severe last year that most industry observers weren't expecting such intense cutbacks in 2024. But an ongoing bloodbath is decimating news outlets nationwide.

 Business Insider yesterday announced it was eliminating 8% of its workforce, months after a union strike over a contract impasse. The L.A. Times this week laid off about 120 journalists (more than 20% of the newsroom), after cutting 74 newsroom positions in June.TIME on Tuesday told staff about an unspecified number of layoffs across editorial, tech, sales and TIME Studios.The Washington Post lost a whole newsroom's worth of talent at the end of last year through a buyout offer aimed at eliminating 240 jobs. Sports Illustrated's newsroom was gutted by sweeping layoffs after its parent company, The Arena Group, failed to make a $3.75 million quarterly payment to the group from which it licenses the Sports Illustrated brand. Paramount CEO Bob Bakish warned employees yesterday that the company is planning a fresh round of layoffs. The New York Daily News editorial union walked off the job yesterday to protest "chronic cuts" by its owner, private equity firm Alden Capital. Forbes' newsroom union began a three-day walkout yesterday, arguing management was union busting. Its CEO announced layoffs later that afternoon hitting roughly 3% of the company.

Heading into 2024, analysts predicted that digital advertising will only grow in the mid-single digits for the foreseeable future. The lack of a market solution for news has prompted regulators and philanthropists to scramble for alternatives.