An Oregon weekly newspaper, the Eugene Weekly, has been forced to lay off its entire staff and cease print operations after discovering that its funds were embezzled by a former employee. The devastating blow comes after 40 years of serving as a vital source of information in a community grappling with the growing gaps in local news coverage. Editor Camilla Mortensen revealed that about a week before Christmas, the newspaper uncovered inaccuracies in its bookkeeping. It was then revealed that a former employee heavily involved in the paper's finances had been using the company's bank account to pay themselves $90,000 since at least 2022.

In addition to the embezzlement, the Eugene Weekly also found that it had accumulated at least $100,000 in unpaid bills, including debts to the paper's printer, spanning several months. Furthermore, multiple employees, including Mortensen herself, discovered that money from their paychecks, intended for retirement accounts, had never been deposited. With the realization that they could not meet the next payroll, the newspaper was left with no choice but to lay off its entire staff of 10 and halt its print edition.

The Eugene Weekly, founded in 1982, distributed 30,000 copies each week for free in Eugene, the third-largest city in Oregon and home to the University of Oregon. Mortensen expressed her devastation, particularly at the timing of the layoffs, just three days before Christmas. She admitted that she had never anticipated or suspected such a situation would occur.

The suspected employee, who had worked for the paper for approximately four years, has been terminated, according to Mortensen. The Eugene Police Department's financial crimes unit is currently investigating the incident, while the newspaper's owners have enlisted forensic accountants to uncover the full extent of the embezzlement.

Brent Walth, a journalism professor at the University of Oregon, expressed concern over the loss of the Eugene Weekly, which he described as an independent watchdog and a compassionate voice for the community. He highlighted the paper's obituaries of homeless individuals as an example of how it humanized significant issues in the city. Walth also emphasized the paper's impact on journalism students, providing them with opportunities to publish and launch their careers.

The closure of local news outlets across the United States in recent decades has resulted in many Americans losing access to essential information about their communities and local governments. This trend has contributed to increasing polarization, according to Tim Gleason, the former dean of the University of Oregon's journalism school. He lamented the loss of community connections facilitated by local journalism, which has led to the formation of partisan camps.

Researchers at Northwestern University revealed that an average of 2.5 newspapers closed per week in the U.S. in 2023. They further discovered that over 200 counties have no local news outlet at all, while more than half of all U.S. counties have either no local news source or only one remaining outlet, typically a weekly newspaper.

Despite being officially unemployed, the dedicated staff of the Eugene Weekly has continued to work without pay, assisting in updating the website and planning the next steps. Todd Cooper, the paper's art director, described his colleagues as hardworking and creative individuals who are deeply committed to the community. The newspaper has launched a fundraising effort, including a GoFundMe page, which has already raised over $11,000 within a day of the financial troubles being announced. Cooper expressed hope that now that the suspected embezzler has been fired, the paper will bounce back stronger and last for another 40 years.