The Finnish News Agency STT will wind down its news and photojournalism units from March next year, resulting in the loss of 89 jobs. The decision follows years of financial losses and a recent restructuring round triggered by its largest shareholder, Sanoma Media Finland, reducing its use of the agency's services.
The restructuring and redundancy talks, launched after an announcement last month that the board was planning to cease operations, included the status of all 95 permanent employees, the company said. Yle understands six people will be offered the opportunity to continue working for the company in non-journalistic roles.
STT, one of the oldest operating news agencies in the world, was founded in 1887. Throughout its history, its news and photojournalism services have been widely used by all major Finnish media outlets.
The agency's Viestintäpalvelut (communication service) unit, which distributes press releases, will continue operating after March. It employs seven people, who were excluded from the restructuring negotiations.
The impending shutdown comes after years of financial struggles. Last year, Sanoma Media Finland, STT's largest shareholder, announced plans to significantly reduce its use of the agency's news and photo services, casting significant doubt over the agency's future. The government granted STT around one million euros in state aid, but the agency did not accept the money as it was not deemed enough to keep it afloat.
The decision was labelled “shocking” by Finland's journalism union Journalistiliitto. Chair of the union, Marjaana Varmavuori, described the news as “devastating” in a press release. “STT is not just one media company among others. Its role in producing and distributing reliable information in Finland is irreplaceable,” she wrote.
Analysis
Why This Matters
- The closure of a 140-year-old national news agency ends a central pillar of Finland's media infrastructure that supplied news and photos to all major outlets.
- The loss of 89 journalism jobs concentrates media ownership and raises questions about the diversity of news sources available to Finnish publishers.
- It highlights the existential financial pressures facing traditional wire services as their largest customers reduce their reliance on agency content.
Background
STT was founded in 1887 and operated as a core news provider for Finland's entire media landscape. Its financial situation became critical when its largest shareholder, Sanoma Media Finland, announced plans to significantly cut its use of the agency's services. A roughly one-million-euro state aid package was offered but rejected by the agency, which concluded the sum was insufficient to keep the news operations viable.
Key Perspectives
- STT: Stated the restructuring was prompted by long-standing losses and a challenging operating environment, and determined that a roughly one-million-euro state aid package was insufficient to keep the agency afloat.
- Union of Journalists in Finland (Journalistiliitto): Called the planned shutdown of STT's news and photojournalism units "shocking" and "devastating." Chair Marjaana Varmavuori described the agency's role in producing and distributing reliable information in Finland as "irreplaceable."
What to Watch
- The wind-down process of the news and photojournalism units ahead of the March closure deadline.
- Whether other Finnish media outlets or a new entity will move to fill the gap left by the loss of STT's national wire and photo services.
- The future of the remaining Viestintäpalvelut unit and any broader restructuring of the company's non-journalistic operations.
Checked
11 claims in this story checked against 1 source: 10 supported.
Show each claim
- SupportedMarjaana Varmavuori said: “STT is not just one media company among others. Its role in producing and distributing reliable information in Finland is irreplaceable.”Yle News: “"STT is not just one media company among others. Its role in producing and distributing reliable information in Finland is irreplaceable."”
- SupportedVarmavuori described the news as “devastating” in a press release.Yle News: “"The news is devastating," Marjaana Varmavuori , chair of the Union of Journalists in Finland, wrote in a press release.”
- SupportedJournalistiliitto labelled the decision “shocking”.Yle News: “a decision labelled "shocking" by Finland's journalism union Journalistiliitto.”
- SupportedSTT will wind down its news and photojournalism units from March next year.Yle News: “The Finnish News Agency STT will wind down the news and photojournalism units of its business from March next year.”
- SupportedThe wind-down will result in 89 job losses.Yle News: “The move will lead to the loss of 89 jobs at one of the oldest operating news agencies in the world.”
- Partly supportedThe decision follows years of financial losses and a recent restructuring round triggered by Sanoma Media Finland reducing its use of STT’s services.Yle News: “Last year, STT's largest shareholder, Sanoma Media Finland, announced plans to significantly reduce its use of the agency's news and photo services — leading to a restructuring round and casting significant doubt over the agency's future.”
- SupportedThe restructuring talks included the status of all 95 permanent employees.Yle News: “When the restructuring and redundancy talks with staff representatives were launched, the company said the status of all 95 permanent employees were included in the talks.”
- SupportedYle understands that six people will be offered the opportunity to continue in non-journalistic roles.Yle News: “Yle understands that six people will be offered the opportunity to continue working for the company in non-journalistic roles.”
- SupportedSTT was founded in 1887.Yle News: “The Helsinki-based agency was founded in 1887”
- SupportedSTT's Viestintäpalvelut unit will continue after March, and its seven employees were excluded from restructuring negotiations.Yle News: “STT's Viestintäpalvelut (communication service) unit, which distributes press releases, will continue operating after March. It employs seven people, who were excluded from the restructuring negotiations.”
- SupportedThe government granted STT around one million euros in state aid, but STT did not accept it because it was not considered enough to keep the agency afloat.Yle News: “The government granted STT around one million euros in state aid, but the money was not accepted by the agency as it was not deemed enough to keep it afloat.”
