NPR Cutting 10% of Workforce

National Public Radio will reduce its staff by 10 percent while it tries to figure out what CEO John Lansing calls a “strange” situation. “sharp decline” In sponsorship revenue

“Our financial outlook has darkened considerably over recent weeks,” Lansing sent a memo Wednesday to the staff. “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.”

Lansing also stated that the majority of NPRThe company will no longer have open positions, and will reduce its current workforce by 10 percent. The public media company employs more than 700 people.

“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 also 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 suggested that NPR’s job cuts would result in a more refined mission. Lansing wrote that “some work will need to change or stop entirely,” NPR’s executive team is trying to figure out where it should continue investing and where it should cut back.

NPR is facing the same issues that affect much of the media industry. A weak Advertising NPR is experiencing a decline in corporate sponsorships. The podcasting business has been similarly affected industry-wide, which means that NPR’s expansion in digital space likely has also suffered a decrease.

“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.

The following are some of NPR’s most listened to programs, in both podcast and terrestrial radio format. Fresh Air, Planet Money, Wait Wait… Don’t Tell MeAnd Get Up First. It also boasts a news division with a substantial size, producing journalism that can be used in all of its programming.

You can read Lansing’s memo below.

All,

Our financial outlook has deteriorated significantly over the past weeks, as we discuss in the all-staff meeting. Even though we are doing our most challenging and important work, the global economic outlook remains uncertain. We are seeing a decline in revenue from corporate sponsors and a weakening ad sector. While we had an initial plan to deal with a 20% drop in sponsorship revenue, FY23 is now expected to see a $30M deficit. We will not be able to make the same cuts that we made to our budget. 

Contrary to the financial problems we faced during pandemics, we expect rising costs and no sign that revenues will rebound quickly. We have to adjust what we can control, which is our spending.

We are at a crossroads where all jobs can be lost. This was something we fought to avoid. We have already cut 14M in expenses. These include freezing the majority vacant jobs, suspending paid fellowships and internships, as well as restricting non-essential travel.

While we have cut costs, we have intensified our efforts to create a runway to increase revenue for public media with new licensing agreements, major gifts and grants, as well as the groundbreaking work of NPR Network.

We must further reduce our spending to address the increasing deficit. 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 have to reduce the number of vacant positions by around 10%. The final percentage will depend on the number of open positions that we can eliminate. This process can be facilitated by having internal conversations and bargaining directly 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 is a huge 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.

We must follow our strategic priorities and support NPR’s future and mission with the resources that we have. Some work may need to be changed or stopped entirely as we reduce the number roles at NPR. It will take additional time to determine what that work is. I have asked the Executive Committee for assistance in this process. They are to do so as fast as possible and with as much care as possible to ensure everyone has the clarity they desire. I expect to make final decisions on the reductions in position by the week of February 20.

As always, we will work with our unions. I’m confident that these conversations will prove to be beneficial. NABET, SAG-AFTRA, and SAG-AFTRA were essential partners in NPR’s many successes over the years.

This is a deeply disturbing situation. Working with our unions, we will work as quickly as possible to give clarity on the reductions required.

We will keep the lines open of communication as we go through the next few weeks. As we have done with major organizational changes in recent years, we will continue to work through this process with compassion, respect, and dignity. We will support the DEI priorities and not have a disproportionate impact on people of color or other historically marginalized groups. We will be transparent about how we support the future of our company and our amazing employees. 

John