Struggling with declining revenue in its groundbreaking nonprofit radio/newspaper model, Chicago Public Media is offering voluntary buyouts for Chicago Sun-Times journalists and business employees at WBEZ.
The WBEZ newsroom will not be affected by the buyout announcement Wednesday, but more cuts could be on the way.
In a memo shared with Chicago Public Media staffers and obtained by the Tribune on Wednesday, new CEO Melissa Bell said employees will be offered an incentive package to voluntarily leave the company.
“Our hope is that this action and other efforts will reduce our costs so that we can avoid more significant cost-cutting measures down the road,” Bell said in a separate memo to WBEZ members.
Bell told employees at a staff meeting Wednesday the company is looking to shave $3 million to $5 million off the annual budget through the buyouts.
The Sun-Times has 144 employees, including 104 on the editorial side, while WBEZ has 134 employees, with 64 content creators, according to Chicago Public Media.
Long a money-losing newspaper, the Sun-Times is still bleeding red ink since joining the nonprofit fold and faces a $12 million operating deficit this year, according to Chicago Public Media. While the shortfall is covered by philanthropic funding through 2026, downsizing at the Sun-Times is part of a broader strategy to “gradually eliminate” the gap, a spokesperson said Wednesday.
The Sun-Times Guild, which represents 80 journalists at the newspaper, expressed disappointment over the plan to offer voluntary buyouts.
“Our union is frustrated that our organization’s management did not secure more revenue in the past three years to avoid staffing cuts and secure our sustainability,” the union said in a statement.
The Chicago Sun-Times merged with WBEZ-FM 91.5 under the nonprofit banner of Chicago Public Media in January 2022, with ambitious plans to leverage synergies and boost the fortunes of both the newspaper and flagship NPR radio station.
But there has been significant static at Chicago Public Media recently, with CEO Matt Moog stepping down last year amid revenue shortfalls after engineering the merger of WBEZ and the Chicago Sun-Times, backed by $61 million in initial philanthropic support.
Chicago Public Media implemented layoffs and buyouts in April 2024, trimming the ranks by 17 employees, dramatically scaling back WBEZ’s podcasting unit and eliminating its urban alternative radio platform Vocalo.
In June, the local unit of SAG-AFTRA, which represents more than 60 employees at WBEZ, filed an unfair labor practices complaint against Chicago Public Media in the wake of layoffs and buyouts thinning the ranks at the NPR station.
Bell, a digital journalism pioneer who co-founded online news site Vox.com, was named in June to replace Moog, taking the reins in September.
In the memo to supporters of the nonprofit media organization, Bell said she plans to build the “Newsroom of the Future” by investing in innovation, unifying its platforms on one website and reimagining the audio lineup.
First up is cutting costs through the voluntary buyout ahead of possible layoffs and other measures.
“While we’ve made strides in adapting to the rapidly changing media landscape, these efforts haven’t yet translated into the sustainable revenue we need,” Bell said in the memo to WBEZ members. “Making this adjustment now is a necessary step to position us for long-term success and fully realize the transformative potential of our combined organization.”
rchannick@chicagotribune.com
