United Kingdom: openDemocracy Cuts Jobs Amid Funding Challenges
Layoffs indicate deeper issues in financial and strategic management and raise significant concerns about the transparency and accountability of openDemocracy's leadership
Location: United Kingdom, LondonDate: April 9, 2024
Women Press Freedom expresses solidarity with Anita Mureithi, Caroline Molloy, Laura Oliver, Ruby Lott-Lavigna, and all journalists impacted by the recent layoffs at openDemocracy. The circumstances surrounding the layoffs despite the organization's reported financial surplus, raise concerns about transparency and decision-making within the organization. There must be accountability from those in leadership positions at such organizations. The drastic measures taken by openDemocracy, including a 40% reduction in expenses and significant layoffs, reflect a reactive approach to financial challenges, which appears misaligned with the organization's recent financial performance. This mismanagement directly impacts the diversity of voices in journalism, particularly affecting women and people of color, who are already underrepresented in the industry. Women Press Freedom is particularly troubled by the lack of communication and transparency leading up to these layoffs. The suddenness of the announcement left affected journalists with little time to prepare, causing emotional and financial distress. We call for greater oversight and accountability within media organizations to ensure that layoffs are not used as a quick fix for deeper structural issues. The mishandling of management decisions at openDemocracy serves as a cautionary tale for other media outlets.
“I'm feeling alright, having gone through the stages of grief and now in the acceptance phase. It's such a shame, but opportunities arise from situations like this.” says openDemocracy reporter Anita Mureithi in a recent interview with Women Press Freedom following her layoff.
OpenDemocracy, a non-profit newsroom, has implemented drastic cost-cutting measures, including a 40% reduction in expenses and significant layoffs, to stave off potential liquidation by June. The organization initially attributed these layoffs to "wider industry trends" and the cessation of certain funding sources, reflecting the financial challenges that have influenced this restructuring.
The decision to initiate a redundancy round surprised many, especially since openDemocracy reported a £110,000 operating surplus on revenue of £3.44m in 2022. The unexpected layoffs affected approximately ten roles, a third of the staff, including key positions such as the head of news, news editor, and political correspondent.
Subsequent to unionized staff passing a vote of no confidence in Chief Executive Satbir Singh and Board Chair Suzanna Taverne following the cuts, openDemocracy’s leadership team informed the organization's National Union of Journalists (NUJ) chapel that the non-profit could have faced liquidation by June without these measures.
Discussing the impact of the recent layoffs at openDemocracy, Mureithi detailed the emotional toll of discovering the news in late March and bidding farewell to an organization that had shaped her journalistic path. Expressing solidarity with colleagues facing job uncertainties, she highlighted the profound effect of such transitions on media workers and the journalism community at large.
“Ten of us have been laid off, with two being women. As for the challenges facing independent journalists, job cuts in media pose a significant hurdle. Sustainable opportunities for independent journalism are dwindling, making it tough to tell impactful stories.” expresses Mureithi.
Notable staff members, including head of news Ramzy Alwakeel, political correspondent Ruby Lott-Lavigna, news editor Sam Gelder, and reporter Adam Bychawski, have shared on Twitter that they were also made redundant.
“Sustainable opportunities for independent journalism are dwindling, making it tough to tell impactful stories”
This financial turmoil marks a dramatic shift for the organization, which has undergone significant leadership changes in recent years, including two CEO changes since 2021. Current CEO Singh, who took over in April 2022, had to navigate additional challenges during former CEO Peter Geoghegan's absence due to long Covid.
In its most recent financial report for 2022, openDemocracy disclosed an income of £3.44m, with the majority sourced from grants, underscoring the impact of funding dynamics on the organization's current staffing adjustments.
Women Press Freedom has been documenting the wave of layoffs affecting newsrooms in the United States, Canada, and the United Kingdom in the past year. With a significant number of job cuts in the media industry over the past year, disproportionately impacting women and women of color, the absence of these vital voices underscores the worrisome trajectory of independent journalism.
Women Press Freedom urges stakeholders and policymakers to prioritize the sustainable development of independent journalism by supporting fair employment practices and creating a more inclusive environment for all journalists. These job cuts represent a troubling trend in the mismanagement of resources within independent media organizations, particularly when those most affected are women and marginalized voices. We unequivocally support the journalists impacted by the recent layoffs at openDemocracy and condemn the dismissal of crucial voices in independent journalism. Women Press Freedom calls for immediate action to address these management failures and to ensure that independent journalism can continue to thrive without sacrificing its most vital voices. We remain dedicated to monitoring this situation, providing support to our media colleagues, and advocating for necessary reforms to foster a just, accountable, and sustainable media landscape.
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