NPR, Newsweek Announce Layoffs

(MoneyWatch)  It looks like few, if any, media organizations will escape whole from the current economic meltdown -- regardless of business model.

For the first time in a quarter century, National Public Radio has cut a substantial portion of its workforce. The network announced that it is letting go 64 (7 percent) of its 889 employees, to address a $23 million shortfall. It is also eliminating two daily programs, one were geared to younger listeners and other to African-American listeners.

NPR's business model relies on programming fees paid by its member stations, foundation grants, individual donations, a small amount of government support, and corporate underwriting -- public broadcasting's version of advertising. NPR says this last category, underwriting, accounted for about a third of its annual budget, but that it is now projected to come in 30 percent under the target of $47 million, to only $33 million this fiscal year.

Meanwhile, Newsweek is enduring yet another round of layoffs, on the heels of large cutbacks last April. The magazine reportedly will also probably cut some pages out of its weekly print edition. As often noted here, the "newsweeklies" are an endangered species of magazine. (Time and U.S. News also recently announced cuts and reorganizations.)

Publishing weekly simply cannot compete with news delivered via Cable TV and the Internet. Advertising revenue is way down, as are circulation and newsstand sales. For these outdated products, there simply is no way out.