December 10, 2008
Contact:
Danielle Deabler, NPR
Anna Christopher, NPR

   

TOUGH ECONOMY FORCES NPR TO ADDRESS UNEXPECTED SHORTFALL IN REVENUE

Steep Decline in Corporate Underwriting - Leads to Budget Reductions, Despite Growing Audiences



Washington, D.C.; December 10, 2008 – Confronted by an uncertain economy and a sharp decline in current and projected revenues from corporate underwriting, NPR today announced that it will reduce its workforce by 7 percent and cut expenses. The difficult moves come despite NPR reaching near-record audience levels on-air and online, with 26.4 million people listening to NPR programs each week and 8 million people visiting NPR.org each month.

A significant number of the personnel cuts result from the upcoming cancellation of two NPR produced programs – Day to Day and News & Notes. Both programs, broadcast on NPR Member stations nationwide, will remain on the air through March 20, 2009.

Staff and expense reductions will be made in reporting, editorial and production areas; station services; digital media; research; communications and administrative support. A total of 64 filled positions have been eliminated against NPR’s current staff of 889, 21 open positions will not be filled and travel and discretionary expenses have been cut across the organization.

“The difficult decision to cancel two programs and eliminate the jobs of valued NPR employees was made after an exhaustive review of our entire organization, and with the greatest reluctance,” said Dennis Haarsager, NPR’s Interim President and CEO. “With all of NPR’s revenue sources under pressure, these actions were necessary to responsibly stabilize our finances and put NPR on a realistic path.”

In July, NPR projected a relatively manageable $2 million deficit for fiscal year 2009. With the rapid downturn in the U.S. economy this fall, corporate sponsorships – NPR’s second-largest source of funding after fees paid to NPR by stations – have declined and projections have dropped precipitously, raising the projected deficit to $23 million, and prompting the need for significant and immediate reductions in expenses. To help NPR align its budget, the Board of Directors has authorized NPR to draw down its operating reserves by a maximum of 30 percent in FY09 (10/1/08-9/30/09). Legal restrictions severely limit expenditure of the NPR endowment, which includes the 2003 bequest made by Joan B. Kroc.

“It’s crucial to realize that these programming changes are being driven by a loss in revenue, not relevance,” said Ellen Weiss, NPR’s Senior Vice President for News. “With near-record audience levels, now more than ever people are relying on NPR to better understand the extraordinary events occurring in the world.”

“News & Notes and Day to Day are staffed by smart, talented and hardworking journalists,” Weiss continued. “Today’s announcement is not a judgment of the work they did, but a careful decision about investing in the programming and services that will have the greatest potential to make an impact on a broad audience, and serve the most public radio stations.”

About NPR
Since its launch in 1970, NPR has evolved into a leading media company, award-winning news organization, and dominant force in American life. NPR produces and/or distributes more than 1300 hours of programming weekly, including more than 150 hours of news, information, talk, entertainment and cultural shows for more than 880 public radio stations, with 26.4 million listeners weekly. NPR programs two 24/7 channels for Sirius XM Radio, and five 24/7 music multicast channels for HD Radio; additionally, with more than 90 podcasts, NPR is the most successful podcaster among American media companies. Its 24/7 NPR Worldwide program stream reaches listeners in more than 100 countries. www.NPR.org offers extensive original audio, video, photography and text content, as well as nearly 15 years of NPR programming archives. NPR Music, launched in November 2007 as a free music discovery destination, has concerts, interviews, studio sessions, blogs, and features spanning all music genres. NPR's continuing expansion in digital media includes NPR Music, NPR Mobile, NPR’s Open API, launched in July 2008, and NPR Community, launched in September 2008.

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