The Intercept is running out of cash

Many of the Intercept’s journalists direct their ire at Chabel, a longtime nonprofit executive.

Chabel joined the Intercept at a transition moment for the organization. In 2022, First Look Media had offered a $12 million grant to help the publication spin off — about half of what Intercept leaders had asked for. The publication’s editor-in-chief, Roger D. Hodge, said he told the organization’s board that he did not believe the grant was enough, and they should wind down the Intercept and give staff as generous a severance package as possible. Chabel, who had initially joined the organization as a consultant to manage expenses and oversee the spinoff, helped convince First Look Media to up its grant to $14 million, and presented what appeared to be a financial path forward for the organization.

When staffers convened in October last year for a meeting at the organization’s New York offices, its leadership had what staff interpreted as good news. Now the organization’s CEO, Chabel was overseeing the new financial support model, which would rely on both small-dollar donors and major gifts from philanthropic individuals and organizations. While she wouldn’t commit during the meeting to not laying off staff in the future, Chabel told employees that the organization was stable and appeared to be on target to meet its fundraising goals.

Editorially, world events had reinvigorated The Intercept and given it renewed purpose. The progressive publication’s disdain of Israeli military action and sympathy for the Palestinians distinguished it early in the Gaza war from many major American news outlets. And its distance from the Democratic establishment helped it break a number of stories about the rift within media organizations, liberal politics, and the art world over both U.S. domestic issues and Israel’s military operations in Gaza. That coverage resonated with its core audience of readers and supporters: The Intercept’s membership team boasted to staff that it had exceeded some of its targets in the months following Oct. 7.

But while the scoops yielded small-dollar donations, the organization’s leadership struggled to find the big money needed to keep it operating. Privately, executives acknowledged that while philanthropic donations had doubled between 2022 and 2023, from $488,000 to $867,000, they still had fallen short. In February, the publication laid off 30% of its editorial staff.

It also fired Hodge. The relationship between the then-EIC and Chabel had been deteriorating for months, after Hodge told Chabel that he would not lay off any more staff. Two sources told Semafor she was also frustrated by his lack of enthusiasm for working more closely with the business side. Chabel raised her concerns to the organization’s board of directors, to whom Hodge reported directly, and the board voted unanimously to oust him.

Hodge’s ouster and the increasingly troubled financial picture also created an editorial power vacuum. After the board fired Hodge, Chabel received approval to restructure the organization, requiring a new editor-in-chief to report up to the CEO, rather than directly to the board. She then asked deputy editor Nausicaa Renner and senior news editor Ali Gharib to serve as interim co-editors-in-chief while they searched for a new top editor. Both declined, and Renner resigned.

In a statement to Semafor, Renner said that she found the editorial restructuring “disturbing,” arguing that Chabel’s leadership had altered the coverage and threatened editorial independence.

“Editorial hires and priorities should not be determined by the CEO,” she said of Chabel. “No matter what her politics are as an individual, the effect of her cuts and leadership is to quiet an outspoken outlet on Gaza.”

The site’s veteran journalists offered an interim path forward. Several staffers proposed that a four-person committee be formed to run the publication’s editorial side while it searched for a new top editor: Gharib, co-founder Jeremy Scahill, Washington, D.C. bureau chief Ryan Grim, and editor Maryam Saleh. The board rejected the idea.

In March, Chabel announced to staff in an email that it had been approached by several unnamed employees who put forward a proposal for “a transfer of the intellectual property of The Intercept to a new entity.”

“We are engaging with it seriously,” Chabel wrote.

The email confused and alarmed staff, prompting Grim to respond with a clarification. He and co-founder Jeremy Scahill had suggested that the four-person board of directors resign, turning the operation over to the duo and remaining staff.

“Our motivation is firmly rooted in a deep commitment to sustaining the work of a media outlet that has served for more than a decade as a vital source of…