Facing a mounting pressure to adapt its cost structure to the digital realities of the media industry, ABC announced on Tuesday that it intends to make deep cuts to its staff as part of a “fundamental transformation” to its news operation.
“The time has come to re-think how we do what we are doing,” ABC News president David Westin wrote in a memo to staff announcing the impending changes. “When we are finished, many job descriptions will be different, different skill sets may be required, and, yes, we will likely have substantially fewer people on staff at ABC News.”
A representative for ABC News did not immediately return a call seeking comment.
According to a pair of reports, ABC is looking to slash its headcount by as much as 25 percent.
According to the Los Angeles Times, the guillotine is expected to be unveiled on Wednesday, when employees will be asked to accept buyout packages -- a similar process to what occured at New York Times late last year. ABC is looking to cut between 20 and 25 percent of its 1,400-person workforce -- which would result in a much deeper round of cuts than the 125 newsroom staffers axed in 2001.
If ABC doesn't meet that number through volunteer buyouts, the difference would be made through layoffs.
On Feb. 4, the New York Times reported that cuts at ABC were possible.
Television news -- like most of the rest of the media industry -- has watched its viewership shrink as the number of digital alternatives for consumers expand. Advertising, meanwhile, had eroded along with viewers.
"We can see that our entire society is in the middle of a revolution -- a revolution in the ways that people get their news and information," Westin wrote.
Earlier this month, CBS laid off as many as 90 employees in a cost-cutting effort.
"The time has come to anticipate change, rather than respond to it," Westin continued. "We have a rare opportunity to get in front of what’s coming, to ensure that ABC News has a sound journalistic and financial footing for many years to come, and to serve our audiences even better. But we must move boldly and promptly. In the past, we’ve sought out less expensive ways to replicate what we’ve always done."
Westin's entire memo:
From: Westin, David
Sent: Tuesday, February 23, 2010 3:40 PM
To: ABCTV News ALL
Cc: Sweeney, Anne
Subject: ABC News Transformation
Over the past several years, we’ve seen a lot of changes -- changes at ABC News and in the news industry overall. I’m proud of the way we’ve responded both to unexpected transitions in our programs and to the economic realities of our business. We’ve adapted quickly and effectively and – above all – put our audiences first. Our programs are stronger today than they were ten years ago. This is a credit first and foremost to the men and women at ABC News.
