The Daily Beast’s new president, Joanna Coles, is rushing to hire high-profile names like fired CNN host Brian Stelter and is also planning to cut more than a third of its staff, according to information obtained by The Washington Post.
Coles was brought in last month by media mogul Barry Diller and Disney bigwig Ben Sherwood to revive the struggling news site, but sources familiar with the matter told The Washington Post on Tuesday that Coles has reached out to Stelter, the former anchor of CNN’s now-defunct “Reliable Source,” to run the Beast’s media coverage.
Stelter, who has since been fired by CNN and taken a special role at Vanity Fair magazine, declined to comment.
The rumors that Kohl’s was trying to lure Stelter come after the company acknowledged on Tuesday that it had offered voluntary buyouts to its 37 union members.
A source close to the Beast said roughly 30% are expected to take up the relief before it expires in mid-June.
“Coles wants to create an editorial department in his own image so he’s either going along with the buyout or risk being fired,” the source said, adding that the layoffs “will probably be even worse than the 30% figure.”
Another source said Kohls and Sherwood hope to save “millions of dollars” by reducing the footprint of their Frank Gehry-designed headquarters in Manhattan’s upscale Chelsea neighborhood, as well as cut unions to save $1.5 million.
Management has proposed a buyout package that would pay an average of three to four months’ salary to employees who have been with Beast for two to four years, the first source noted.
“The voluntary acquisition is part of a larger plan to reduce expenses, increase revenue and put Beast in a strong and sustainable financial position,” a Beast spokesperson told The Post.
“Everyone in the digital media industry faces tough choices, and this acquisition is especially tough as talented and highly-respected colleagues are leaving the company next month. Throughout this process, we remain committed to The Beast’s core mission: great independent journalism that makes a difference.”
The Beast’s union declined to comment.
The insider added that non-union senior editors, including Daily Beast editor-in-chief Tracy Conner, are also being targeted for dismissal, as previously reported by The Washington Post.
A second source said job cuts would also affect the magazine’s business side in the coming months.
The spokesperson declined to comment on the future of Connor or any other department chief.
Ms Coles, 61, was named chief creative content officer after Mr Diller gave her and Mr Sherwood a minority stake in the tabloid-style site.
Sources told The Washington Post that since taking over, the British-born editor-in-chief has intimidated staff with pointed questions about who they are and how they want to cover their stories, stoking fears that he could be replaced by new reporters with better ideas.
Staff are walking a tightrope trying to please Mr Coles, who behaves graciously in the office, the first source said, while Mr Connor and editor-in-chief Katie Baker keep a low profile.
“Mr Coles seems rather upbeat and happy in the office whilst other staff feel like the world is ending as they face the prospect of losing their jobs,” the source said.
“No one knows who to tell…are Katie and Tracy still alive?”
Upset by those changes and Mr. Coles’s sometimes brash editorial policies (including light-hearted coverage of Meghan Markle jams), several reporters have left the company, including Washington, D.C., bureau chief Matt Fuller.
Staff morale was further dampened by Coles’ announcement that it would downsize its base on the fifth floor of the sail-shaped IAC building and turn the newsroom into a “bullpen.”
Coles, a former editor-in-chief of the Guardian and a Hearst executive, hired Martin Pengelly, a long-time journalist at the U.K.-based paper, who has worked to recruit other staff, including reporter Hugo Rowell.
Sources say Coles also has an obsession with hiring Hollywood screenwriters to beef up the site’s humor and cultural coverage.
She tapped former “Last Week Tonight with John Oliver” writer Jill Twiss to write a listicle about former New York City Mayor Rudy Giuliani: “7 Things More Embarrassing Than Rudy Peeing on Zoom” In particular.
She also Nell ScovelThe comedy writer, who created the TV series Sabrina: The Teenage Witch, has written listicles including “5 Solid Theories About What Happened to Jennifer Lopez and Ben,” as well as opinion pieces about former President Donald Trump.
Tensions in the office also seem to extend to Connor’s dog, Pearl, who has an “accident” in the pet-friendly office.
“Tracy’s dog pooped in the office,” a source told Us Weekly. “The facilities staff complained and now all dogs have to be on a leash!”
An order banning dogs from offices may be issued soon, the official added.
