Despite building a large audience in a short time in the demanding business of digital journalism, Deadline Detroit announced today it will undergo a reorganization next month that includes layoffs and payless paydays as it continues to talk to investors.
In a statement, Deadline Detroit co-founders Allan Lengel and Bill McGraw said:
“In less than two years, the Deadline Detroit staff has built an online news publication from an idea into a daily must-read for many people. But revenues, while growing, are not yet able to support operations. We have no choice but to reorganize while we keep the site going and work to attract investors who can help us reach profitability.”
Founded in April 2012 with an investment from Compuware Ventures, Deadline Detroit operates seven days a week, aggregating the most interesting coverage of metro Detroit from anywhere on the Internet and publishing stories and commentary by its own staffers and freelancers.
Deadline Detroit’s unique approach to news struck a chord. In the first 10 weeks of 2014, its audience has grown 275 percent over the same period last year.
Deadline Detroit has attracted more than 330,000 unique visitors a month and has garnered more than 27,000 Facebook fans. In its recent Best of Detroit issue, Real Detroit Weekly called Deadline Detroit the metro area’s best local news website.
Over the past 23 months, Deadline Detroit has broken stories; provided incisive commentary; pioneered the use of a camera-equipped drone for news coverage; published photo essays of Detroit streets to show how life continues during bankruptcy; staged an online festival of old Detroit videos; posted an interview program hosted by Darrell Dawsey; and brought readers links to stories in publications ranging from the London-based Guardian to Motor City Muckraker.
“We continue to talk to people about investing and hope we can recall our talented staff and continue to grow,” the statement from Lengel and McGraw said.
“We are a startup, based downtown, and we’re passionate about Detroit. We want to grow as a publication to chronicle the city’s transition, and we want to continue to provide jobs.”
The layoffs will take effect April 4 and will affect all four Deadline Detroit employees and all part-time employees.
The Deadline Detroit management and its chief ad salesperson will operate the site without salary while they talk with investors.
