Organization expects a $30 million sponsor falloff this year
(Bloomberg) — National Public Radio, the network that airs All Things Considered and Planet Money, will reduce its staff by 10% after projecting a $30 million revenue shortfall for the year, according to a memo obtained by Bloomberg.
A minimum of 100 positions will be eliminated, according to a spokeswoman, and the organization will aim to make decisions on which staff members will be impacted by the week of March 20th.
“Unlike the financial challenges we faced during the worst of the pandemic, we project increasing costs and no sign of a quick revenue rebound,” John Lansing, president and chief executive officer, wrote in the memo. “We must make adjustments to what we control, and that is our spending.”
The organization said it already cut $14 million in expenses through a hiring freeze, suspended internships and fellowships, as well as restricted travel. Lansing said 65% of the organization’s budget goes toward personnel, which can hover around 1,100 positions.
NPR earlier expected to have a $20 million shortfall in sponsorship revenue for the fiscal year, and, when it announced its near hiring freeze last year, said a major portion of its revenue comes from corporate sponsorships, which are typically sensitive to slowdowns in the broader economy. This recent memo again points to those sponsors’ spending reductions and a shaky economic outlook.
Many other media companies, particularly those in the audio space, have also laid off employees over the past year. Spotify Technology SA reduced its staff by 6% in January while Warner Bros. Discovery Inc. eliminated roles across the company and in CNN’s audio division in September.
(Updated first paragraph to reflect the number of impacted positions and added context in last paragraph on prior layoffs.)
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