Turmoil at the Los Angeles Times: Billionaire Owner Patrick Soon-Shiong Faces Backlash Over "Brutal" Job Cuts

The corridors of the Los Angeles Times are grappling with an atmosphere of discontent and uncertainty. South African-born billionaire Patrick Soon-Shiong, who acquired the newspaper in 2018, is at the center of a storm following the largest layoffs in its 142-year history.

Last week, at least 115 people were unexpectedly ousted from their roles, a move described by the newsroom's union as "brutal and inhumane." This drastic action came on the heels of resignations from top editorial positions, including the managing editor Sara Yasin and the executive editor Kevin Merida.

This is not the first round of layoffs since Soon-Shiong took over. The newspaper faced a similar situation in June last year when dozens of employees were retrenched amidst an acute financial crunch. Such actions have sparked concerns among staff about the future of one of the United States' most prominent newspapers.

The owner’s recent comments did little to allay fears. In an interview, Soon-Shiong revealed a near $1 billion investment over five years, yet the paper continues to suffer annual losses ranging from $30 million to $40 million. He critiqued the previous leadership for not steering the publication in a direction he saw fit. His vision for the Times was one that embraced a digital future and community engagement—a vision that has not translated into a financially viable strategy yet.

Meanwhile, internal strife only deepened with accusations of censorship. Reports have surfaced of Merida's decision to bar certain journalists from reporting on the Gaza conflict, which led to objections from within the ranks, including Soon-Shiong's daughter, Nika.

As the billionaire's wealth reportedly nose-dives—buckling from a $13.3 billion net worth in 2021 to around $9.5 billion—there's increasing pressure to stabilize his ventures, including the Times.

The layoffs have drawn widespread criticism. Workers were allegedly locked out of their accounts even before they could digest the layoff notifications in their emails. The humiliation of finding out through an impersonal HR Zoom webinar, with disabled chat and no opportunity to ask questions, stung deeply.

The LA Times Guild struck a tone of betrayal, remarking on the cold manner in which the layoffs were carried out and accusing the company management of creating divisions within the workforce. All this dissent culminated in a one-day strike, demonstrating the collective frustration and demanding respect for the affected journalists.

What the future holds for the Los Angeles Times under Patrick Soon-Shiong's stewardship remains uncertain. With the publication still entrenched in financial issues and the newsroom's morale at a low ebb, a path to recovery seems steep and fraught with challenges. It’s clear the venerable institution is at a crossroads, with its very identity and legacy hanging in the balance.