Introduction
A Storied Paper in Hard Times
The Los Angeles Times, one of America’s most influential regional newspapers, is grappling with several deep problems in 2025. From major financial losses to newsroom layoffs, legal disputes, and faltering growth in subscriptions, the Times is being forced to rethink business models and strategies.
Patrick Soon-Shiong, the billionaire owner, has made several public moves lately — some controversial, others necessary — to stabilize the paper. But the road ahead looks tough, especially in an era where print is shrinking and digital is a mixed bag.
Key Developments & Financial State
Heavy Losses & Layoffs
The LA Times has reportedly suffered annual losses of $30-40 million under Soon-Shiong’s ownership.
To cope, the paper laid off around 20% of its newsroom staff — over 100 people — in one of its largest cuts ever.
More recently, an additional set of layoffs were announced, about 13% of newsroom positions, including full-time and temporary workers, covering editors, audio producers, and managers.
Subscription & Revenue Challenges
Digital subscription growth has stalled. Earlier goals (like hitting 1 million subscribers) are much further off than expected. The Wrap reported that while the LA Times increased number of digital subscribers somewhat (by tens of thousands), cancellations are eating into those gains.
Print subscriptions, while fewer in number, bring significantly more revenue per user than digital. But print is declining and more costly to distribute.
Advertising revenue has also declined, following broader industry trends, making the subscription model even more critical.
Legal Issues & Lawsuits
The LA Times is paying $3 million to settle a suit alleging pay discrimination: women and minority journalists claimed they were paid less than their white counterparts. The settlement covers nearly 240 former and current staffers.
A $24 million lawsuit has been filed by the landlord of the “Olympic printing plant,” accusing the Times / its related entities of failing to pay rent, leaving the facility in disrepair, with damage such as toxic ink stains, holes in walls, leaks, etc.
A former Times reporter, Maya Lau, has filed a 1st Amendment lawsuit against Los Angeles County and former Sheriff Alex Villanueva, alleging that her investigation work triggered a retaliatory criminal probe engineered to intimidate journalists.
Ownership & Structural Moves
Owner Patrick Soon-Shiong has declared that LA Times will go public within about a year, using a structure similar to the Green Bay Packers, giving public ownership stake to readers / community. (Visit)
Leadership shakeups have followed: high-level editorial and management staff have resigned or been replaced, especially after disputes about editorial endorsements and direction.
Strengths & What’s Still Working
The LA Times still has strong brand recognition and local influence. Its investigative journalism and local coverage are well respected.
There is still a loyal print subscriber base, especially in certain neighborhoods willing to pay higher rates. That gives it revenue buffers some digital-first newspapers lack.
The paper has made investments in digital infrastructure, data, and technology to try to catch up with digital transformation.
Risks & Weaknesses
Digital Retention & Growth Uncertainty
Even when the LA Times adds digital subscribers, many cancel. Retention is a serious weak point. Without keeping customers, growth is just churn.Cost of Print & Physical Assets
Maintaining printing plants, delivery logistics, leases (like the printing plant lawsuit), and the aging infrastructure is expensive. With declining print demand, these become liabilities.Revenue Pressure & Loss Exposure
Losses of tens of millions annually are not sustainable indefinitely. If subscription growth doesn’t accelerate or ad revenue doesn’t pick up, financial stability is in jeopardy.Legal & Reputational Risk
The recent lawsuits expose the paper to financial damages and public relations harm. Discrimination claims, rent lawsuits, press freedom issues—all can erode trust.Leadership / Editorial Conflicts
Disputes about direction, editorial endorsements (e.g. blocking endorsements), internal disagreements can distract focus and harm staff morale.
Possible Futures & Strategic Pathways
Scenario 1: Successful Turnaround
LA Times manages to ramp up digital subscriptions significantly, reduce costs (print + overhead), and improve retention.
Moves to go public help bring capital, better stakeholder buy-in, and perhaps more disciplined governance.
Legal issues are settled without crippling costs, and the paper maintains its editorial integrity.
Scenario 2: Gradual Decline
Subscription growth remains modest, print revenue continues shrinking, legal costs mount.
More layoffs, cutting of local bureaus, sections, or features.
Editorial quality or breadth may suffer, further hurting ability to attract subscribers.
Scenario 3: Restructuring or Sale
If losses worsen, Soon-Shiong might bring in partners, sell off assets (printing plants, real estate), or merge with other media groups.
A more drastic shift to digital-only might happen, shedding print entirely in some markets.
FAQs
Q1: Why is LA Times losing money even with subscriptions?
Because print operations are expensive, and digital subscriptions are not growing fast enough to offset losses in ad revenue and print. Also, high costs of staff, real estate, leasing, printing and delivery add up. Legal liabilities and other losses contribute.
Q2: How many people were laid off at LA Times?
About 115 newsroom staff in major layoffs (≈20%) earlier, and additional cuts (~13%) more recently.
Q3: What is the legal case about the printing plant?
The LA Times is being sued for ~$24 million by its landlord, Alameda, for allegedly not paying rent and abandoning the printing plant in disrepair, with damage to the facility.
Q4: What’s the public offering plan?
Owner Patrick Soon-Shiong has said he plans to take LA Times public, possibly within a year. The model may resemble that of the Green Bay Packers, meaning some portion of ownership/stake may be held by the public.
Q5: Are there legal risks for LA Times beyond the printing plant case?
Yes. The discrimination settlement, the reporter lawsuit over press freedom, and possible unpaid obligations or lease liabilities are all risks. Each could cost financially and harm reputation.
Q6: Can LA Times survive if it fails to reach subscription goals?
Only with major restructuring: cutting more costs, possibly eliminating or reducing print operations, changing business models, or finding partnerships/investment. Alternatively, it may need to significantly pivot its revenue streams (e.g. more events, branded content, etc.).
Conclusion
The Los Angeles Times faces a critical moment in its 143-year history. The mix of financial losses, sputtering subscription numbers, legal claims, and shifting industry economics creates a precarious position. But it still holds valuable assets: its brand, its local authority, and a base of committed readers.
For the LA Times to not just survive but thrive, it needs to accelerate its digital transformation, improve retention of paying readers, reduce dependence on print revenue, settle legal liabilities, and maintain trust and editorial credibility. Going public may help, but only if paired with strong performance and good governance.
What readers and stakeholders should watch:
Quarterly subscription and retention numbers
Decisions about print vs. digital investment
Outcome of major lawsuits (printing plant, discrimination, press-freedom reporter case)
Leadership changes and editorial direction
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