National Public Radio will reduce its workforce by 10 percent as it grapples with what CEO John Lansing says is a “sharp decline” in sponsorship revenue.
“Our financial outlook has darkened considerably over recent weeks,” Lansing wrote in a memo to staff Wednesday. “At a time when we are doing some of our most ambitious and essential work, the global economy remains uncertain. As a result, the ad industry has weakened and we are grappling with a sharp decline in our revenues from corporate sponsors. We had created a plan to address a $20M sponsorship revenue falloff for FY23 but we are now projecting at least a $30M shortfall. The cuts we have already made to our budget will not be enough.”
So Lansing says that most of NPR’s open jobs will be eliminated, and that it will be reducing its existing workforce by 10 percent. More than 700 employees work at the public media firm.
“The final percentage will primarily rely on how many of the open roles, going forward, we are able to eliminate. To work out this process, we will be having conversations internally and bargaining with our unions,” Lansing added. “When we say we are eliminating filled positions, we are talking about our colleagues — people whose skills, spirit, and talents help make NPR what it is today. This will be a major loss.”
Lansing also suggested that the necessary job cuts will result in a more refined mission for NPR as an organization, writing that “some work will need to change or stop entirely,” and that NPR’s executive committee is figuring out where it needs to continue investing, and where it should pull back.
The NPR cuts come as it grapples with the same problems impacting much of the rest of the media industry. A weak advertising industry means that NPR is seeing a pullback in corporate sponsorships. Similarly, the podcasting business has been impacted industry-wide, meaning that NPR’s expansion in the digital space has likely also experienced a decline.
“Unlike the financial challenges we faced during the worst of the pandemic, we project increasing costs and no sign of a quick revenue rebound,” Lansing wrote.
Some of NPR’s most popular programs (on both terrestrial radio and in podcast form) include Fresh Air, Planet Money, Wait Wait… Don’t Tell Me, and Up First. It also has a sizable news division that produces journalism that runs across its programming.
Read Lansing’s memo, below.
All,
As we are discussing in the all-staff meeting right now, our financial outlook has darkened considerably over recent weeks. At a time when we are doing some of our most ambitious and essential work, the global economy remains uncertain. As a result, the ad industry has weakened and we are grappling with a sharp decline in our revenues from corporate sponsors. We had created a plan to address a $20M sponsorship revenue falloff for FY23 but we are now projecting at least a $30M shortfall. The cuts we have already made to our budget will not be enough.
Unlike the financial challenges we faced during the worst of the pandemic, we project increasing costs and no sign of a quick revenue rebound. We must make adjustments to what we control, and that is our spending.
We have reached a point where we can no longer protect all jobs. We fought hard to avoid this. We have already cut $14M in expenses, including freezing the majority of vacant jobs, suspending paid internships and fellowships, and restricting non-essential travel.
As we have cut expenses, we have redoubled efforts to build the runway to increase revenues for public media, with new licensing deals, major gifts and grants, and the groundbreaking work of the NPR Network.
To address the growing deficit, we need to further reduce our spending. With approximately 65% of our budget supporting personnel costs, we will need to eliminate many of the vacant positions that have been frozen. We will also need to reduce filled positions by approximately 10%. The final percentage will primarily rely on how many of the open roles, going forward, we are able to eliminate. To work out this process, we will be having conversations internally and bargaining with our unions.
When we say we are eliminating filled positions, we are talking about our colleagues — people whose skills, spirit, and talents help make NPR what it is today. This will be a major loss.
NPR’s Distribution division, which manages the Public Radio Satellite System, is separately funded, not impacted by sponsorships, and will not be included in this process.
Guided by our strategic priorities, we must support NPR’s mission and future with the resources we have. As we reduce the number of roles at NPR, some work will need to change or stop entirely. Figuring out what work that is will take some additional time. I have directed the Executive Committee to move forward on this thinking with me as quickly but as carefully as possible, to provide everyone with the clarity they deserve. I hope to have final decisions about the position reductions by the week of March 20.
We will work with our unions as we always have, and I know those conversations will be helpful. SAG-AFTRA and NABET have been essential partners over the years in how NPR has navigated many challenges.
I recognize that all of this is deeply unsettling, and I know that this introduces an uncomfortable period of uncertainty. We will move as swiftly as possible to provide clarity about the reductions needed, working in consultation with our unions.
As we move through the coming weeks, we will keep the lines of communication open. We will go through this process as we have with other major organizational developments in recent years, with as much compassion, respect and dignity as we can. We will support our DEI priorities, and not disproportionately impact people of color or any other historically marginalized group. We will be open about our work to support the future of our organization and our remarkable employees.
John
