IBT Media accused of failing to pay severance to laid-off staff and shifting large sums of money into religious school
IBT Media has been accused by former employees of failing to pay severance or give notice in relation to a raft of lay-offs the company made last month, with Twitter users launching an investigation into the financial history of the media group and its ties to its religious founder.
IBT
Former employees have claimed that IBT Media, which operates International Business Times and Newsweek, gave "zero notice" of layoffs, refused to pay severance and routinely failed to pay bills or international staff.
The complaints have provoked a hashtag on Twitter #IBTWTF, with the list of IBT’s alleged wrongdoings quickly stacking up.
.@IBTMedia gave zero notice of layoffs, still hasn't paid some people's last paycheck, and routinely doesn't pay its bills #IBTWTF — Brendan James (@deep_beige) July 28, 2016
was sent to Iraq and needed to pay for extra security. didn't get paid that week. Had to beg for wire transfer #IBTWTF
— Erin Banco (@ErinBanco) July 28, 2016
Last month at least 30 reporters and editors were laid off from IBTimes. Three months prior the news brand cut at least 15 staffers.
IBT Media said in a statement at the time that the cuts were part of a "corporate restructuring" and that Newsweek would "split off into a separate operational entity" — hinting at a potential sale of the magazine.
According to one Twitter user, IBT fired its HR representative two days before announcing the string of layoffs and did not draw up severance agreements for two weeks.
Here's what happened when @IBTMedia laid us off: They fired the HR person two days beforehand and brought someone new in. #IBTWTF — Oriana Schwindt (@Schwindter) July 28, 2016
We discovered that this was because @IBTMedia hadn't even drawn up severance agreements yet. That didn't happen for *two weeks.* #IBTWTF — Oriana Schwindt (@Schwindter) July 28, 2016
Twitter users have also linked IBT’s aggressive cost-cutting with alleged payments from the company to religious institution Olivet University in 2014, with one such payment allegedly amounting to $1.26m as seen in Olivet University’s 990.
Does IBT have the money? Well they had $1.3m to give to religious institution Olivet University in FY 2014. #IBTWTF pic.twitter.com/uKV559pJjp — Owen Davis (@odavis_) July 28, 2016
It's nearly impossible to know how much money has flowed from @IBTMedia to religious orgs that IBT mgmt are involved in. #IBTWTF — Owen Davis (@odavis_) July 28, 2016
The school, founded by Korean Christian preacher David Jang, is reportedly linked to both of IBT’s founders, Johnathan Davis and Etienne Uzac.
Gawker reported in 2014 that Davis formerly ran Olivet's 'School of Journalism' and is married to Olivet's president, and that Uzac used to be the university's treasurer and is married to Jang's translator.
The Drum contacted IBT Media for comment who had not responded by time of publishing.