What the Hell Is Going on at Newsweek?
After a handful of top reporters and editors were fired in a purge of the Newsweek masthead on Monday, about 40 of the magazine’s staffers ignored management’s invitation to go home and busted out wine and bourbon for what one employee described as “half funeral, half party.”
“Nobody knows what’s up,” the staffer told Splinter. The gathering and gallows humor came hours after a storied publication beset by legal and financial troubles was thrown into a new round of chaos—this one of its own making.
On Monday, editor in chief Bob Roe, executive editor Kenneth Li, senior writers Celeste Katz, and reportedly senior writer Josh Saul were abruptly sacked. Senior Writer Matthew Cooper resigned in protest of the firings.
Management was mum as to why they made the initial changes, according to three current Newsweek staffers who spoke to Splinter on the condition of anonymity to protect their jobs, and an expected meeting between remaining editors and the company’s chief executive, Dev Pagrad, never occurred. The haziness left the newsroom to speculate not only whether their colleagues had been fired for reporting on the recent intrigue roiling their parent company, Newsweek Media Group, but also whether management had any plan to right the ship.
Newsweek Media Group didn’t respond to Splinter’s request for comment.
Last month, investigators from the Manhattan District Attorney’s Office raided the company’s Lower Manhattan office as part of a reported probe into its finances. Current staffers said that Roe and Li assigned Katz, Saul, and Josh Keefe, a reporter at the Newsweek’s sister site, The International Business Times, to cover the investigation and its fallout. Keefe tweeted late Monday that while he was not fired along with the people who reported on the scandal breaking at their own company, “that was very clearly the plan.”
According to their reporting, a grand jury investigation into Newsweek Media Group “has been ongoing for at least 17 months” and a “probe was likely looking at loans the company took out to purchase the servers” removed by investigators.
Two weeks after the raid, Newsweek Media Group Co-Founder and Chairman Etienne Uzac and his wife and financial director, Marion Kim, resigned. Questions remain about executives’ unpaid debts and shady business dealings.
The drama unfolding at the Newsweek offices have been compounded by dueling BuzzFeed News reports. The first documented how the publisher had hired a new chief content officer, Dayan Candappa, just months after he was ousted from Reuters amid a sexual harassment investigation. Candappa has since been placed on leave. Days later, another story alleged the publisher had been “engaging in fraudulent online traffic practices that helped it secure a major ad buy” from the Consumer Financial Protection Bureau.