(Abdul–Rahman Oladimeji Bello, Headline USA) In what will be one of the greatest rounds of layoffs in the 53-year history of the leftist nonprofit media company NPR, the organization expects to reduce its personnel by around 10%, a cut that equates to approximately 100 jobs.
In November, National Public Radio stated that it would be cutting costs by around $20 million, primarily by putting a hold on recruiting and limiting travel. Nevertheless, MSN reported that John Lansing, the CEO, stated that the anticipated cost reductions would not be sufficient.
In a memo Wednesday to to staff, Lansing called the cutbacks “a major loss,” according to the Hollywood Reporter.
“Our financial outlook has darkened considerably over recent weeks,” Lansing wrote. “At a time when we are doing some of our most ambitious and essential work, the global economy remains uncertain.”
The decline in advertising revenue has a ripple effect, affecting other businesses and leading to layoffs.
Ad contracts, dues from its member stations, charitable contributions and federal subsidies, which generally amount to less than 2% of NPR’s operational budget, are the primary sources of funding for the organization.
The organization has historically gone through periods of financial instability, which have resulted in reduced programming, employee layoffs and work furloughs. In 2008, when the economy was in a state of decline, NPR let go of 64 people, representing around 7%t of its total workforce. After then, it had operational deficits in four out of the following five years.
“We had created a plan to address a $20M sponsorship revenue falloff for FY23 but we are now projecting at least a $30M shortfall,” Lansing wrote in his staff memo. “The cuts we have already made to our budget will not be enough.”
The commencement of the coronavirus epidemic in 2020 resulted in a mix of salary cutbacks, layoffs and a $10 million shortfall. During the fiscal year 2021, NPR reported revenues of $293 million and a financial surplus of $28.8 million.
It has used an endowment partly funded by a $200 million donation from the estate of Joan Kroc, heiress to the McDonald’s fast-food business, to wipe some of its red print over the years. In Sept 2021, the most recent month for which data is readily accessible, the endowment had a total of $368.2 million.
