TWT CEO Larry Beasley (a.k.a. “Evil Santa”) and the gang of suits over off New York Avenue are contemplating another deep round of layoffs at the troubled newspaper. Sources say the next axe to fall may not be far off.
The reason: A TWT insider tells FishbowlDC that the publication is bleeding money. More specifically, management was told they had three years to get to zero subsidy from the parent company. Only six months are left on that timetable and TWT is still tens of millions away from breaking even. We’re told management is “cornered and desperate” and doesn’t have many cards to play.
Although Editor David Jackson promised in a Nov. 28 email to staff that impending “reductions in staffing will be a one-time-only process. We do not intend to go through this again” — a statement like in tough times isn’t necessarily full proof.
Plans had been discussed for further cuts later in 2013. Jackson was in those meetings.
This next possible round of cuts is…
actually according to plan, but behind schedule. The January cuts that laid off more than 25 percent of the newsroom were supposed to go down before the end of 2012 but were delayed after leaks to media outlets made the downsizing public before the company was able to get out in front of the news.
“Incessant leaks have the executive team in a panic and distrustful of each other,” aninsider told FBDC. “Only a handful have access to the information that is being leaked so the leaders know the revelations are coming from someone in their own small circle. The November leaks completely incapacitated the executive team and setback their attempt to wrestle costs under control by delaying necessary cuts.”
We’ve requested comment from Beasley and Jackson. No word as of press time.