What's Next, Now: December 2022
This month, our crystal ball predicts more layoffs as the economy braces for 2023, a killing blow for crypto, and increasing volatility in energy prices.
In the era of shrinking newsrooms, media layoffs during a recession are not uncommon. But some analysts are sounding the alarm that this recession could have a markedly different impact on the American media landscape.
Investment firms and large media companies looking to maximize profits own a far larger share of newspapers in 2022 than in previous recessions. These firms had already cut staff and resources to bare bones when the latest economic headwinds began. Now, all that’s left is to shutter local outlets altogether — leaving more than 70 million Americans in news deserts, without access to local coverage.
When the first round of news media job cuts was announced this year, the U.S. had already lost one-fourth of the newspapers it had in 2005. Now, according to Axios, nearly 1,100 news media jobs have been cut in 2022. In just the last month, the looming recession has already wreaked havoc on publications across the country:
Protocol, a tech news startup founded by the former owner of Politico, is closing its doors.
Morning Brew is losing 14% of its staff.
For Buzzfeed, it’s 12%.
At CNN, the outlet is canceling all original Headline News programming and laying off hundreds of people.
Gannett, the largest local newspaper chain in the U.S., laid off an additional 6% of staff, the latest in a series of repeated cuts for the giant.
Even The Washington Post isn’t immune, shuttering its Sunday magazine and laying off up to 250 employees.
We’re already beginning to see the fallout from understaffed newsrooms as misinformation slips through — even at major media outlets. In November, one instance of erroneous reporting had potentially significant geopolitical consequences when the AP mistakenly reported that a Russian missile had struck Poland.
Stretched newsrooms are being asked to cover more topics with less resources. For brands, that means it’s becoming increasingly difficult to break through with earned media coverage.
At the same time, the number of nonprofit newsrooms has more than doubled in five years. Smaller local news startups are cropping up in markets across the country. As the industry becomes even more fragmented in the years ahead, the burden will fall on consumers and brands to validate news for themselves.