The Los Angeles Times is set to lay off over 20% of its newsroom staff, marking one of the largest staff reductions in the newspaper's 143-year history, a person familiar with the matter told CNN on Tuesday.

Marked as a "dark day" by Matt Pearce, the President of the Media Guild of the West noted that at least 94 union members would be laid off, far lower than the number of layoffs the Bargaining Committee expected last week.

Layoff Caused by Annual Losses

Among those affected by the staff reduction are senior editors, photographers, and members of the video unit, who may be eligible for buyouts under the union contract. The layoffs were deemed necessary as the Los Angeles Times could not sustain annual losses of up to $40 million without increasing advertising and subscription revenue, according to the paper's owner, Dr. Patrick Soon-Shiong.

Years of Unclear Strategy, Absence of Publisher, and a Lack of Direction

The union stated on Tuesday that the recent staffing cut at the L.A. Times reflects years of unclear strategy, the absence of a publisher, and a lack of direction, expressing gratitude for the Soon-Shiong family's investment. They suggested that those overseeing the newspaper's direction have failed in their stewardship but will remain committed to being good-faith partners in the business and at the bargaining table.

Biotech billionaire Soon-Shiong acquired the L.A. Times in 2018, bringing it back to local ownership two decades after being sold to Tribune Co. The acquisition raised hopes for the newspaper, which had experienced years of cutbacks, declining circulation, and leadership changes.

The Los Angeles Times, home to the largest newsroom in the western U.S., is experiencing turmoil due to a significant financial deficit, losing tens of millions of dollars annually. The sudden departure of its top editor, Kevin Merida, and the exit of two members from an interim leadership team appointed by owner Dr. Patrick Soon-Shiong has added to the challenges the newspaper currently faces.

On Tuesday, Soon-Shiong informed James that he had lost the confidence of Merida and some senior editors he had appointed. Despite challenges, Soon-Shiong rejected the notion that the newspaper was in turmoil, asserting they had a real plan.

Staffer Describing a Different Situation

One anonymous staffer described a different situation at the newspaper, "I cannot overstate the level of chaos." Ten Democratic members of Congress representing California also expressed concern over the planned layoffs in a letter to Soon-Shiong, emphasizing the vital role of news outlets in providing accurate information during elections. They urged consideration of alternative solutions to navigate financial challenges without compromising the newsroom's integrity.

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The L.A. Times Calling for a Fair Pay and a Chance to Become Self-Sustaining

In response, Soon-Shiong highlighted his significant investment in the paper and suggested that lawmakers should take action to support revenue-starved news organizations, writing, "All we are asking for is the opportunity for our newspaper and hardworking journalists to be fairly- compensated, and for the L.A. Times to become a self-sustaining institution."

The Times is not alone in grappling with financial challenges amid a challenging advertising landscape, rapid shifts in consumer behavior, and technological changes that threaten the future of journalism.

Most major newsrooms have been forced to undergo layoffs in the past year. In 2023, nearly 2,700 jobs were cut in the journalism industry, marking the highest total since 2020, when the COVID-19 pandemic disrupted the industry.

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