Sixty35 Media LLC made a significant announcement on March 15, revealing a substantial reduction in its workforce, cutting nearly half of its employee positions in response to a daunting $300,000 financial shortfall. Here’s a breakdown of the journey that led to this decision and the steps being taken to ensure a sustainable future:
How Did We Get Here?
- The COVID-19 pandemic inflicted severe economic challenges, resulting in a significant loss of advertisers as businesses closed down during lockdowns. Despite the downturn, Sixty35 Media continued operations without advertising revenue, opting instead to maintain a full staff complement. Financial support from John Weiss, owner and founder of the Colorado Springs Independent, and across-the-board pay cuts helped sustain operations but led to substantial financial losses.
- As the pandemic waned, efforts were made to revive advertising income by negotiating lower prices and offering free ads to support struggling local businesses. However, rising printing and paper costs further exacerbated financial strain. Rather than downsizing, incremental raises were given to employees to mitigate the impact of the soaring cost of living.
- Following John Weiss’s retirement in August 2022, the company underwent restructuring, consolidating multiple publications into a single news magazine to ensure continued local independent journalism. Colorado Publishing House transitioned into a nonprofit entity to explore additional revenue streams through donations, memberships, and grants, accompanied by a rebranding initiative. Unfortunately, this transition led to market confusion and a loss of key sales personnel.
- A volunteer board of directors was established to oversee nonprofit operations, tasked with navigating complex legal processes to transfer assets and liabilities. However, insufficient communication between the board and operational staff, compounded by inaccurate financial reporting, hindered effective decision-making.
Where Are We Now?
- Over the past six weeks, the board has undertaken extensive efforts to rectify financial records, revealing outstanding payables of approximately $300,000 and receivables of $283,000. Despite challenges in collections due to ongoing economic recovery from COVID-19, advertising sales are gradually increasing.
- To streamline operations and reduce costs, the company will transition to a fully remote work model, except for essential office functions. Additionally, the publication will undergo a redesign aimed at lowering production expenses while preserving its brand identity.
Creating a Sustainable Future
- With concerted efforts to collect outstanding debts, engage grant opportunities, expand marketing initiatives, and cultivate a robust membership base, Sixty35 Media aims to secure its financial stability and fulfill its journalistic mission. Once debts are settled, the focus will shift to expanding reporting, events, and community services.
How Can You Help?
- Become a member of Sixty35 Media and encourage others to join.
- Share the donation page to support the organization’s financial recovery.
- Provide feedback on the publication’s content and attend community events.
- Exercise patience as the company navigates through this challenging period.
Together, through collective support and engagement, we can shape the future of local journalism and community empowerment. Join us on this journey towards building a vibrant and resilient city.