Tronc Lays Off Staff at L.A. Times and Chicago Tribune

Just weeks after journalists from the Los Angeles Times and the Chicago Tribune receive separate honors from the 2017 Investigative Reporters & Editors (IRE)

Subscription News: Tronc Lays Off Staff at L.A. Times and Chicago Tribune

Source: Tronc

Just weeks after journalists from the Los Angeles Times and the Chicago Tribune receive separate honors from the 2017 Investigative Reporters & Editors (IRE) awards, parent-company Tronc announced in an employee meeting that it is laying off dozens of employees because of a change in the company’s business strategy. The layoffs include Tribune Interactive’s L.A.-based video and online content teams, which operated separately from the newspaper.

Among those let go was former L.A. Times editor in chief Lewis D’Vorkin, who had been moved to the position of chief content officer of Tribune Interactive, after a three-month stint as editor in chief. According to The Times, D’Vorkin caused ‘much tension and discord in the newsroom’ during his tenure, though the reason for his firing was unclear. D’Vorkin said the decision for him to leave was mutual. Prior to being let go, D’Vorkin had moved out of his downtown L.A. office, along with several Tribune Interactive executives, without advising staff.

Subscription News: Tronc Lays Off Staff at L.A. Times and Chicago Tribune

Source: L.A. Times

D’Vorkin wasn’t the only source of controversy at The Times or Tronc in the last six months, however. Last year Tronc appointed Ross Levinsohn, a former executive from Yahoo and Fox, as The Times’ publisher. In January, Levinsohn was put on unpaid leave when it was reported that he was a defendant in two sexual harassment cases. Though he was cleared of wrongdoing by the company, he was moved from the publisher’s position to the chief executive of Tribune Interactive.

In January, L.A. Times newsroom employees voted to join a union – the NewsGuild-Communications Workers of America – to support them in handling management and pay issues. The following month Tronc announced the sale of the L.A. Times to billionaire Dr. Patrick Soon-Shiong for $500 million in cash plus the assumption of $90 million of pension liabilities. The sale, which is expected to close in late April, also included The San Diego Union-Tribune and other local papers in the California News Group.

In March, Tronc announced that Michael Ferro was retiring from Tronc. Tronc CEO Justin Dearborn was named to replace him as chairman of the board.

‘Michael retires having created considerable shareholder value for the company in just two years as chairman of the board,’ said Dearborn, who will also serve as CEO. ‘Prior to Michael being elected Chairman in 2016, the company had a market capitalization of approximately $200 million, $41 million of cash on hand and nearly $500 million of debt and pension liability as compared to a market capitalization today that represents a more than 300% improvement, a greater than 400% improvement in cash at the end of 2017 and significantly lower debt.’

‘Additionally, the California News Group transaction he engineered for $500 million in cash plus the assumption of $90 million in pension obligations leaves the company in its strongest financial position in more than a decade. We look forward to Michael’s continued support as an investor and wish him the best in his retirement,’ Dearborn added.

Subscription News: Tronc Lays Off Staff at L.A. Times and Chicago Tribune

Source: Chicago Tribune

In March, Tronc laid off a second round of layoffs at the Chicago Tribune. In October, the newspaper laid off 14 editorial positions at the Tribune and its Pioneer Press suburban group. The latest round of cuts are due to a reorganization that will transform the newsroom into one that is more nimble and responsive, according to the Tribune. Since those layoffs, journalists at the Tribune announced they will also form a union, reported The Times.

On Tuesday, The Times reported that its new owner Soon-Shiong has plans to move the newspaper out of its downtown headquarters in L.A. to El Segundo, about 20 miles away, before the paper’s lease expires at the end of June. In an interview last week, Soon-Shion said the leaseholder, Onni Group, wanted to increase the lease by $1 million a month. Rather than pay the higher lease, Soon-Shiong is moving the newsroom to a building he owns in El Segundo which is being redesigned to suit the newspaper’s needs.

Insider Take:

While the last six months have been particularly tumultuous for the L.A. Times and the Chicago Tribune, these changes are consistent with the sweeping changes Tronc has made under Ferro’s leadership, including the company’s questionable decision to rebrand as Tronc, which stands for Tribune Online Content, from the iconic Tribune Publishing name. Though Ferro may be gone from leadership, we don’t expect things to settle down at Tronc anytime soon. It seems every month brings new news of a new strategy, reorganization or staffing change. What will be next?   

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