Rupert Murdoch’s The Wall Street Journal made widespread cuts to its DC bureau on Thursday in a restructuring that several insiders called a “bloodbath.”
IAPE TNG CWA Local 1096, which represents employees at Journal parent News Corp., said the layoffs number at least 30, including union-represented journalists and non-union editors.
Multiple teams were hit, but the bureau’s business team, which had about 16 reporters and editors, was particularly impacted, including reporter Amara Omeokwe. A handful were moved to other teams.
Several editors also were let go, including James Graff, who oversaw justice and judiciary coverage, leading one reporter to express confusion about who would edit them going forward.
In a staff note explaining the changes, which was viewed by Business Insider, editor in chief Emma Tucker wrote that the new Washington bureau would focus on politics, policy, defense, law, intelligence, and national security, and on delivering work that “serves the readers and stands out from the competition.” She also said a new enterprise desk would be created.
The cuts were unusual for their scope and the way they were handled.
The Journal was prepared in 2023 for some cuts when News Corp. said there would be a 5% reduction across units. Tucker, who started a year ago, has talked of making the paper more reader-first and prioritizing enterprise over commodity stories. But those cuts were spare and scattered throughout the year.
This time, the cuts were more extensive. They were also, however, expected, since staffers had been told a restructuring was coming in preparation for the installation of the Journal’s new Washington coverage chief Damian Paletta, who starts February 5. The bureau is the Journal’s second biggest after New York.
Despite the advance warning, the reduction still left some confused, given economics coverage is the Journal’s bread and butter, and parent News Corp. touted strong results in its most recent earnings report, even as the media landscape broadly has been challenged by a choppy ad market and ongoing shift of ad dollars online.
“No one understands,” the first insider said.
“All they keep saying is the company is performing better than ever. We’re quite baffled as to why this is happening,” said Jodi Green, president of IAPE TNG CWA Local 1096.
Some insiders also decried the way the layoffs were handled.
Managing editor Liz Harris addressed the bureau in the morning in a five-minute meeting the day of the cuts but didn’t take questions, multiple people in attendance said. Staff were told they’d get a chance to ask questions on Friday. People were told at the 10:30 meeting that they’d get notified of a meeting by noon if they were being laid off, which some found galling. Staff gathered at a nearby bar to commiserate over whiskey.
“This is a bloodbath and nobody can understand why,” the second insider said.
Asked for comment on the layoffs, a representative for the Journal pointed to Tucker’s memo and declined to elaborate.
Here’s the full note from Tucker:
Dear All,
Today we announced a new structure in Washington that means a number of our colleagues will be leaving the paper. These journalists have made vital contributions to our success over many years, and I thank them for their hard work and their dedication.
The new Washington bureau will focus on politics, policy, defense, law, intelligence and national security. Damian Paletta, our new Washington coverage chief, starts next week and will focus our efforts in these areas to deliver work that serves the readers and stands out from the competition. This means the Business team in Washington is closing as is the Washington-based U.S.-China team. Stories covered by these groups will be driven by various teams in the newsroom. We are also changing the editing structure in the bureau and are closing the D.C. News Desk; those editing functions will be handled elsewhere in the bureau or on the news desk in New York.
We are creating a new team in Washington to deliver world-class enterprise journalism. This team’s mission will be to break high-impact stories and deliver distinctive investigations. We’re seeking experienced journalists with deep sourcing and a track record of major scoops. The vacancies on this team will be open to people in the bureau affected by today’s changes.
We are also expanding the remit of the Finance team, under Marie Beaudette in New York, to include economics. The expanded Finance & Economics coverage area will unify our reporting on the macroeconomy, global economic trends, monetary policy, credit and banking, and financial markets. The team covering the Federal Reserve and macroeconomy in Washington will report to Marie and will work very closely with Damian. There will be editing and reporting opportunities under Finance & Economics covering the U.S. economy, based in New York, and the economies of some of the country’s largest regions. These changes mean some DC-based economics jobs have closed.
Lastly, we are integrating all our coverage of law and the legal system. Brent Kendall, the law bureau chief, will take on the expanded role of Justice, Judiciary and Law Editor. Brent will oversee the teams covering justice and the judiciary in Washington, as well as the existing law-bureau staff who cover other courts. Brent will report to Damian.
It is imperative that we have the right structure in Washington to deliver trusted, ambitious reporting for our readers in an election year and beyond. I thank you for your perseverance and professionalism as we go through this transition.
Emma
This story has been updated with additional information.
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