Tensions are erupting at the Los Angeles Times as its owner considers major budget cuts

Around dusk on Thursday, reporters from the Los Angeles Times gathered at Flora, a rooftop bar not far from the paper's headquarters, to toast their outgoing editor, Kevin Merida.

As reporters and editors sipped cocktails under a darkening sky, the conversation focused on why Mr. Merida, the paper's editor for nearly three years, had decided to leave suddenly — and on the prospect of deep layoffs announced earlier that day during emergency meetings had been discussed. said four attendees.

In the days since, internal negotiations between the company and the union have discussed about 100 job losses, or about 20 percent of the newsroom, according to two of the people, who also have knowledge of the discussions. It has brought journalists from The Times into conflict with their owner, biotechnology billionaire Patrick Soon-Shiong. Those relations reached a low point on Friday when employees walked off the trackin the first union-organized newsroom work stoppage in the newspaper's 142-year history.

Tensions escalated further on Monday after several state congressional representatives Dr. Soon-Shiong had sent a letter expressing concern about the extent of the cuts, and employees received a note informing them that two other editors-in-chief had left.

A company spokeswoman, Hillary Manning, had no comment on tensions in the newsroom or the extent of the proposed cuts, but said in a statement that the newspaper appreciated “the concerns elected officials have expressed about the expected layoffs. ”

She added that The Los Angeles Times had called on lawmakers to pass legislation that could help address the financial challenges facing local news publishers.

“We have made it very clear to many of these same lawmakers in recent years the existential crisis facing local news publishers,” she said. “The Los Angeles Times faces economic challenges as acute as any.”

Major layoffs at The Times, the largest news organization on the West Coast, would be the latest in a string of bad news for the publishing industry, which is facing stormy economic headwinds. In addition to The Times, The Washington Post and Time Magazine collectively lost tens of millions of dollars last year, despite having billionaire owners who have invested deeply in their newsrooms. Cultural touchstones like Pitchfork and Sports Illustrated haven't been spared either, with both publications announcing significant budget cuts in recent weeks.

When Dr. Soon-Shiong bought the newspaper in 2018, The Los Angeles Times reported that the newsroom had about 400 people, with about 138,000 digital subscribers. Journalists, plagued by years of corporate infighting and cost-cutting, welcomed a wealthy owner who said he was willing to invest. Over the course of two years, approximately 150 new journalists were hired, and the newspaper reinvested in foreign news coverage and expanded its digital presence.

But in June, The Times lost 74 editorial positions, or about 13 percent of its workforce, in the first major budget cuts led by Dr. Soon Shiong. Losing another 20 percent of the newsroom would bring staffing levels back to about the same levels they were when Dr. Soon-Shiong bought the company.

The Times has lost money for years, and last year's Hollywood writers' and actors' strikes sapped additional advertising revenue. By mid-year, The Times was on track to lose $30 to $40 million, and the paper was not meeting its subscription targets, paving the way for further cost cuts.

Before the extent of the cuts became public, Mr Merida announced his departure. His departure came after tensions with members of the Soon-Shiong family over editorial and business priorities, including the 2024 budget and a decision by Mr. Merida to fire employees who signed a letter protesting Israel's response to Hamas attacks of October 7, to be banned from reporting. the conflict with Gaza.

On the day of the strike, after journalists left their jobs, they discovered they no longer had access to their work email and Slack accounts, according to three current employees. Their access was restored this weekend, the people said.

Mr Merida's departure has left a void in senior management, which has widened in the past week. Two top editors have now announced their departure: Shani Hilton and Sara Yasin, both editor-in-chief. The two were part of a team of four editors who oversaw the newspaper after Mr. Merida's departure. Semafor earlier reported upon their departure.

“This is a passionate and proud newsroom, and I truly believe that the fierce love for journalism and the newspaper will ensure the future of the newspaper,” Ms. Yasin wrote to her colleagues on Monday.

Later Monday, Julia Turner, an editor-in-chief, sent an email to the newsroom saying that she and Scott Kraft, another editor-in-chief, were “now responsible for all editorial activities.” She added that “we are advocating editorially in conversations with the company about the financial crisis we face.”

The leadership departure prompted some employees to distribute an image showing headshots of departed editors — including Mr. Merida, Ms. Hilton and Ms. Yasin — alongside the paper's other leaders in a grid titled “masthead bingo” .

In the letter to Dr. Soon-Shiong from lawmakers, including Reps. Adam Schiff, Jimmy Gomez and Ted Lieu, raised concerns about the effect the cuts could have on the community.

“We urge all parties to reach a consensus to avoid a drastic measure that would harm the newspaper's ability to report on important news in our city and across the country,” the letter said .