Hedge Fund-Owned Publisher Lays Off Local Journalists From Papers Across the US

As social media networks filled with posts from journalists “deeply saddened” to reveal they were part of McClatchy’s latest round of “gutting” layoffs this week, newspaper staffers and the unions that represent them highlighted “how local coverage will suffer” because over 90 workers were fired by the hedge fund-controlled publisher.

“I’m part of this bloodbath. After dodging layoffs for my entire 19-year career, I finally caught a stray as the Idaho Statesman gutted 60% of its staff,” said sports writer Michael Lycklama, noting his union membership and six-months severance package.

“My heart goes out to my coworkers who have poured their blood, sweat, and tears into Idaho,” he wrote. “We’ve done everything asked of us, and more. Yet when corporate plans fail, McClatchy executives run and hide while our workers and this community suffer all the consequences.”

“These layoffs will create holes in our community and leave it poorer,” he stressed. “There are now drastically fewer eyes watching your elected officials. Fewer reporters uncovering shady businesses. And fewer journalists to highlight and celebrate our state’s unsung heroes.”

With at least 90 workers let go across 17 McClatchy publications, the NewsGuild-CWA similarly warned Friday that “the departure of these talented reporters, visual journalists, and writers will immediately leave gaping holes in local coverage for dozens of communities across the United States.”

At least seven reporters were fired from four newsrooms in Washington state: The Bellingham Herald, The News Tribune, The Olympian, and Tri-City Herald. The NewsGuild noted that “Tacoma will no longer have even a single dedicated journalist tracking city hall, Pierce County government, or local schools,” while “the region near the Canadian border lost an environmental watchdog, and the Hispanic community can no longer turn to a Spanish-speaking reporter in Eastern Washington.”

The Pacific Northwest Newspaper Guild, a local representing reporters in Washington and Idaho, highlighted that “these are journalists who investigated local hospitals, served as watchdogs over state and local government, showed up at every high school game, jumped in to cover breaking news like wildfires, covered news in overlooked communities, and monitored development in one of the fastest-growing regions in the country.”

“One of these papers will no longer have a dedicated reporter covering city hall. Another will no longer have anyone dedicated to covering the state capitol,” the union said. “McClatchy has decided that short-term profits for a hedge fund matter more than the well-being of the communities that its newspapers are supposed to serve. That is a model that is destined to fail.”

Employees of multiple California outlets were also impacted. The Fresno Bee lost staffers, as did the Modesto Bee, which laid off 25% of its newsroom. The Sacramento Bee, the city’s “paper of record,” the NewsGuild said, “lost dogged reporters and veteran journalists who worked for decades to serve readers in the capital region.”

Across the country, The Lexington Herald-Leader, “one of two remaining statewide newspapers in Kentucky, laid off half of its Pulitzer-prize-winning newsroom,” the NewsGuild detailed. “Those layoffs include a senior reporter who worked at the Herald-Leader for more than 20 years, all of the paper’s core political team covering the state legislature in Frankfort, the editor of that politics team, the newspaper’s primary city government reporter in Lexington, a longtime high school sports reporter, two University of Kentucky basketball and football reporters, the paper’s only remaining environmentalist reporter in Eastern Kentucky, the paper’s only regional economic development reporter, a photographer, and a video journalist.”

As the union laid out, The State’s cuts included “the only reporter doing environmental coverage for the state of South Carolina, a more than 30-year veteran of the local newsroom; an investigative reporter who was recognized by the SC Press Association for his work on charter schools; the only reporter covering the city of Columbia; the lead reporter on the Darline Graham Senate race; half of our photography team.”

North Carolina breaking news reporter Jeffery Chamer announced on LinkedIn that “I’ve been informed this morning that I was one of eight people being laid off from The Charlotte Observer. I wish I had something uplifting and optimistic to say, but I’m honestly scared and sad right now. In two weeks, we’ll all be unemployed. And that just breaks my heart.”

“I know deep down we’ll all be OK and land on our feet, but for now it all feels terrifying,” he said. “It’s also so shocking to think about the incredible talent the Observer is losing. I love my colleagues. They’re not just incredible reporters, but people too. I will miss them so, so much.”

In Florida, “these layoffs leave the Bradenton Herald with half of its former staff, or only one editor and two reporters,” the NewsGuild pointed out. “There will be no one to report on local government and no professional photographer and videographer to document the news.”

The cuts also hit Florida papers southeast of Bradenton. As the union detailed: “After more than a century of operation, this layoff will leave the Miami Herald without a city hall reporter at the paper’s namesake. It guts the entire writing staff at El Nuevo Herald, our sister paper that has doggedly covered majority-Latino Miami-Dade County in Spanish for decades.”

Longtime former columnist Carl Hiaasen wrote on Facebook that “this is a death blow to the already skeletonized Miami Herald, once one of the country’s top newspapers. I worked there for over 40 [years], and I feel heartsick for the talented journalists who’ve been gutting it out while McClatchy blithely keeps swinging the axe.”

“By the time the company is finished, all the reporters left standing will fit in a phone booth, and millions of readers in South Florida will be forced to scrounge for actual, true local news on the always-reliable internet,” he continued. “It’s tragic, but there’s a lesson here: If you own a newspaper company, don’t sell it to a hedge fund unless you truly don’t give a shit about your readers.”

As The New York Times reported:

McClatchy has newspapers in 14 states. Formerly a family-run business, it was sold to the hedge fund Chatham Asset Management in 2020 after it declared bankruptcy.

The company has gone through rounds of layoffs in recent years. In late 2025, McClatchy closed its breaking-news desk and shut down its Washington, DC, bureau, while carrying out further layoffs across its newspapers.

This week’s layoffs also impacted the Centre Daily Times in Pennsylvania, Missouri’s Kansas City Star, and the Fort Worth Star-Telegram in Texas.

McClatchy leadership said in an internal email that for the past five years, the company has “made a deliberate choice to maintain our investment in local news reporters,” and “consumer revenue declined 41% while local news expenses remained largely flat.”

Thus, “we are reshaping our newsrooms and reducing positions as we align our resources more closely with what our subscribers value,” the company claimed. “We are making these changes because the status quo no longer works.”

Noting that message, Aaron Leibowitz, who left the Miami Herald last month, wrote on social media that “my former colleagues… deserve better than this disingenuous spin from McClatchy’s hedge fund owners. Assuming those revenue figures are accurate, they’re not just the result of consumer choice in a vacuum. They’re also the result of corporate mismanagement.”

Alexandra Duggan is a reporter for the Washington-based Spokesman-Review, which is not a McClatchy outlet — but as journalists across the Pacific Northwest were laid off on Thursday in “a damn bloodbath,” she said on Bluesky that “some are people I’ve worked with, some are calling me crying because their mentors no longer have jobs.”

“Journalism is so needed. Cutting investigative reporters, city reporters… Idaho and Washington will be worse off,” Duggan said. “You might not care about McClatchy, but taking your hatred of hedge funds out on the reporters who are underpaid and just want to write for their communities ain’t it. Those reporters did damn good work, owned by a hedge fund or not. It’s rare you still see people who give a shit, and they did.”