National Public Radio (NPR) Announces Layoffs
Recession Shortfall of Funds Requires Paring Back Operations
Dec 11, 2008
Although National Public Radio (NPR) had not been effected by the shrinking US economy, finishing its last fiscal year on budget, in the last few months it became obvious that along with other parts of the media, it was going to experience a short fall. This meant the elimination of some jobs and programs.
The Announcement by NPR
In a memo issued on December 10, 2008, Dennis Haarsager, Interim President and CEO, informed the NPR staff that NPR had been effected by the serious deterioration of the U.S. economy and was experiencing a sharp drop in revenue derived from corporate underwriting. He described the plan underway to insure that NPR would weather the economic crisis.
NPR's Financial Situation
NPR began first began to see a decrease in corporate sponsorship, which makes up a third of the operating budget, in late spring of 2008. At that time, budget cuts were made by management and continued to do so as the economy faltered. In September, corporate sponsorship decreased even more sharply.
The biggest underwriters: financial, automotive, media industries as well as philanthropic foundations and other major donors were all experiencing shortfalls themselves. By July 2008, the $2 million deficit that had been projected for Fiscal Year 2009 had risen to $23 million. Revenue for 2008 is projected to fall to $145 millions, an 8 percent decline.
NPR's Budget Reduction Plan
Washington -based NPR said it would lay off about 7 percent of its workforce and eliminate two daily programs produced out of it facilities in Culver City, Cal. These would includ "Day to Day", aimed at younger listeners, and the newsmaker-interview program, "News & Notes," which was to attract African American.
The layoffs of 64 NPR employees, and leaving unfilled another 21 out of the total of 889, is designed to close a $23 million shortfall, according to Haarsager. It will effect all departments, including reporters, producters, researchers, and digital media employees. There will be cutbacks in travel, overtime and restrictions on filling vacant jobs. (Washington Post, 12/10/08)
NPR's Future
NPR relies on not only corporate underwriting, but also membership fees from more than 800 public radios stations, donations from foundations and income from the internal endowment funded by a $230 million bequest made in 2003 by the late Joan Kroc, widow of McDonald's mogul Ray Kroc.
This year, NPR will receive no income from the bequest because of declines in its investment value. Underwriting---the public equivalent of advertising--accounts for about a third of NPR's annual budget and this has fallen as the economy has deteriorated. In making the announcement to the NPR staff, Haaarsager reminded them that "NPR has 882 stations with 26 million listeners who depend on them for its trademark storytelling and superb journalism."
Whether NPR will weather this financial storm and survive the severe downturn is not yet known. It has a strong, dedicated following who might rally behind it as public radio travels these turbulent times.
Source: National Public Radio
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