KQED is in the midst of one of the most difficult moments in the 71-year history of the station. There are a number of concurrent attempts to eliminate or impair federal funding for public media. Meanwhile market conditions and the possibility of a recession have brought downward trends in the key revenue areas of corporate sponsorship and underwriting as well as foundations and grants. Against this landscape KQED has been operating under a $12 million annual board-approved deficit, brought about by investments in our infrastructure, and digital capacity, content and platforms. But those investments have not yet resulted in adequate revenue streams needed to support this expansion in service.
The combination of these forces requires KQED to take action to address our deficit, putting us in a more stable position to navigate the uncertainties we face. We have announced large spending cuts, which includes layoffs, to eliminate our deficit as it currently stands. We have notified 45 people that their jobs are coming to an end. An additional 12 individuals have accepted voluntary buyout packages and will be leaving KQED over the course of the next year. This represents a 15% reduction to our workforce. Another ten open positions are not being filled. Additionally, we are making other expense reductions, including the sunset of our annual Youth Takeover program. The reductions result in around $13 million in annualized operating expenses.
These are heartbreaking cuts to make, especially for an organization like KQED. Our service is rooted in our staff, and we’re losing talented, devoted people who put our mission and their communities first. But by making these adjustments now we are in a more sustainable path to serve our communities.