The Washington Post to offer voluntary buyouts to staff in effort to reduce head count by 240
In a surprising move, The Washington Post has announced plans to offer voluntary buyouts to its staff as part of an effort to reduce its head count by 240 employees. Interim CEO Patty Stonesifer revealed this decision in an email to the staff, explaining that the company’s subscription, traffic, and advertising projections were overly optimistic in the past two years. Stonesifer stated that the company is looking for ways to return to a healthier state in the coming year.
The Post, currently employing around 2,500 people, has scheduled a staff meeting on Wednesday to discuss the buyouts. The offer will be extended to specific jobs and departments. Stonesifer emphasized the urgent need to invest in growth priorities, leading to the difficult conclusion that a cost structure adjustment is necessary. She added that the buyouts are an attempt to avoid layoffs, a situation they are determined to steer clear of.
While company spokeswoman Kathy Baird believes that these buyouts will position The Post strongly for 2024 and beyond, she also expressed acknowledgment that the decision is difficult, as valued colleagues may choose to leave at the end of the year. First reported by The New York Times, this move comes as The Post is set to face a $100 million loss in 2023.
This announcement comes nine months after The Post reduced its newsroom staff by 50 positions, including 20 layoffs. At the time, Fred Ryan, the then-publisher, had assured that the newsroom would either be the same size or larger by the end of 2023, due to continued hiring. However, the company now acknowledges the need to focus resources on initiatives that meet customers’ needs.
This recent development is reminiscent of how The Post handled staff reductions prior to Jeff Bezos’s purchase of the company in 2013, using voluntary buyouts. Since then, The Post has largely avoided mass staff reductions, although it did discontinue its daily free commuter newspaper and stand-alone magazine.
The media industry has witnessed numerous staff reductions in recent years as advertising revenue and readership numbers decline. CNN laid off hundreds of employees in December, Vox Media laid off 7% of its workforce in January, and Gannett, the largest newspaper chain, has undergone multiple rounds of layoffs.
This decision represents one of the most significant business moves made by interim CEO Patty Stonesifer, who assumed the role earlier this year. Stonesifer, a director on Amazon’s board and a longtime friend of Bezos, was tasked with ensuring a smooth transition for the company. However, she has made it clear that she does not intend to remain in the position permanently and that hiring a permanent publisher and CEO is among her main duties.
Stonesifer has received a warm reception from the Post’s staff, in contrast to tensions between Ryan and the newsroom during his tenure. As the company moves forward with these buyouts, it remains to be seen how the reduction in staff will impact the newspaper’s operations and future growth.