R.I.P.: Sports Illustrated Announces Mass Layoffs

The future of Sports Illustrated looked dire Friday after the publisher of the diminished outlet announced mass layoffs because its license to use the iconic brand’s name in print and digital was revoked.

The NY Post reports the Arena Group — which had been roiled by reports that the fabled magazine published AI-generated content — admitted to failing to make a $3.75 million quarterly licensing payment to Authentic Brands Group due this week.

As a result, the publicly-traded Arena announced Thursday it would make a “significant reduction” in its workforce of more than 100 journalists.

SI’s unionized workers received a memo Friday telling them “some employees will be terminated immediately, and paid in lieu of the 60-day applicable notice period under the [union contract].”

An Arena spokesman added that the company is in talks with Authentic Brands about regaining the license. Once a weekly publication, SI was reduced to biweekly publishing in 2018 and became a monthly in 2020.

“We hope to be the company to take SI forward but if not, we are confident that someone will. If it is another business, we will support the transition so the legacy of Sports Illustrated doesn’t suffer.

The outlet’s website had a smattering of fresh stories Friday, suggesting a skeleton crew was still employed.

Sports Illustrated staffers received this today. pic.twitter.com/Q0WdVRzuRb

— Richard Deitsch (@richarddeitsch) January 19, 2024

Meanwhile, SI’s annual Swimsuit edition – which launched the careers of supermodels from Cheryl Tiegs to Tyra Banks – has been completed and will be released in the spring, a source close to the situation told The Post. 

Authentic Brands, owned by Canadian billionaire Jamie Salter,  insisted SI “will continue” – though it did not say who would be at the helm.

News media has suffered from major cost-cutting as companies struggle to make the transition to digital from traditional business models such as print.

NBC News, the Washington Post, Conde Nast and other publishers have also shed staff members. Conde Nast this week said it would fold its taste-making music publication Pitchfork under men’s brand GQ.

The Los Angeles Times newsroom guild on Friday walked out for a one-day strike to protest planned cuts meant to offset financial losses that owner Dr. Patrick Soon-Shiong and his family have taken since acquiring the paper nearly six years ago.

The Times disclosed Thursday that substantial layoffs were coming due to a widening budget deficit. The one-day strike represents the newsroom’s first union-organized work stoppage in the paper’s 142-year history. More than 100 members of the staff are expected to be affected by the cuts.