The Athletic Lays Off 20, Reassigns More As New York Times-Owned Sports Media Entity Reorganizes

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The Athletic launched in 2016 with the goal of replacing local sports coverage that people traditionally got from newspapers. As the newspaper business started to die, the company aimed to bring those former consumers into the Digital Age. Which makes it somewhat ironic that the New York Times -- a newspaper -- eventually bought the company in 2022.

But things haven't gone according to plan for the website. People have enough subscriptions in their life when it comes to streaming, so adding another one to read local sports stories doesn't seem to be a good business model.

The New York Times purchased The Athletic in 2022 for $550 million, but the website hasn't returned that investment thus far. (Photo by ANGELA WEISS/AFP via Getty Images)

The New York Times purchased The Athletic in 2022 for $550 million, but the website hasn't returned that investment thus far. (Photo by ANGELA WEISS/AFP via Getty Images)

As the company tries to figure out its next move, a small wave of layoffs is hitting this week.

According to the Washington Post, The Athletic has not been a financial win for the Times to this point.

"Last year, lost $6.8 million in February and March and another $12.6 million in the second quarter, according to the Times public filings. It lost $7.8 million in the most recent quarter," the Post reports.

By my math, that's over $27 million lost in a year-and-a-half. And it's not like the New York Times is a thriving newspaper that can afford to eat money on a bad investment.

According to Yahoo Finance last month, "The New York Times Co. missed estimates for quarterly revenue ... as a turbulent economy sapped digital subscriber growth and forced businesses to cut back on advertising spending."

The Athletic, New York Times trying to completely rethink strategy for the struggling website

No one knows what's next for The Athletic. However, it seems the company's original mission -- to cover all major US professional sports teams with a dedicated reporter -- is dead.

It's a sad day for those affected by the layoffs, and not something we wish upon anyone. Some of the people laid off took to Twitter to announce their dismissals.

Stay with OutKick for more information as the story develops.

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Dan began his sports media career at ESPN, where he survived for nearly a decade. Once the Stockholm Syndrome cleared, he made his way to Outkick. He is secure enough in his masculinity to admit he is a cat-enthusiast with three cats, one of which is named “Brady” because his wife wishes she were married to Tom instead of him.