Financial Times Implements Tech Department Layoffs Amid Restructuring
The Financial Times has executed a round of layoffs within its Product and Technology department, with approximately a dozen positions eliminated as part of an internal restructuring initiative. This move follows the appointment of Jon Slade as chief executive last summer and comes amid warnings from leadership about "the need for change" to secure the newspaper's future.
Staff Reductions and Redeployments
According to internal communications obtained by City AM, the layoffs affected roles focused on innovation in user experience, with about half of the departing staff exiting earlier in February and the remainder leaving on Friday. The cuts followed a formal consultation process, with several employees being redeployed to different roles within the Product and Tech department, while others were transferred to other areas of the business.
Slade addressed staff during a town hall meeting on Tuesday, emphasizing that the restructuring was not driven by financial pressures. "We are a successful, growing and profitable business," he stated. "It's about giving us the focus and the shape and the capital to invest for our future growth as more challenges emerge."
Leadership's Vision for Change
The CEO acknowledged that "simplification does mean change" and that some roles "might be affected," but he maintained that reducing headcount was "not a primary goal." Instead, Slade framed the restructuring as necessary for long-term strategic positioning, telling employees that the next phase would require "long-term thinking and risk taking."
"If we don't address those debits, then there's a risk we start running out of steam. And I'm not going to let that happen," Slade warned, highlighting his commitment to maintaining the FT's momentum in a rapidly evolving media landscape.
Broader Industry Context
The layoffs occur against a backdrop of subscription challenges from major corporate clients. City AM previously reported that the operator of the London Stock Exchange cancelled hundreds of FT subscriptions, viewed as a response to the newspaper's shifting focus away from London market coverage toward politics and international reporting.
Additionally, tech giant Google recently eliminated numerous enterprise news subscriptions as part of broader cost-cutting measures, affecting thousands of FT subscriptions. This comes despite Google reporting strong revenues and expanding AI features that have strained publisher relationships, with many arguing that AI-generated summaries have impacted search traffic.
Company Response and Future Outlook
The Financial Times declined to comment on specific client relationships. In a statement, an FT spokesperson emphasized: "The FT is profitable and growing in a tumultuous time for the industry, and we're proud of that. This change has nothing to do with cost, but is about ensuring we have the right capabilities in the right places to support our future growth."
The restructuring follows the September appointment of a new chief product and technology officer, as the news organization reviews legacy systems and structures. City AM has approached Google for comment regarding the subscription reductions, but no response has been provided at this time.
