Penguin Random House, America's largest publisher, announced Monday that it has laid off the publishers of two of its most popular literary publications.
The departures of Reagan Arthur, publisher of Alfred A. Knopf, and Lisa Lucas, publisher of Pantheon and Schocken, came as a surprise to many at the company.
Lucas posted on X, formerly called Twitter, that he was told he had been fired at 9:30 a.m. Monday. “I have some regrets about spending my weekend working,” she wrote.
Maya Mavjee, president and publisher of Knopf Doubleday, acknowledged in a memo to employees that the news will unsettle many, but noted that the publisher's restructuring is “necessary for our future growth.”
Mavjee said in the memo that Jordan Pavlin, Knopf's editor-in-chief, will assume both roles, with Pantheon's editorial department now reporting to Doubleday and Knopf becoming its publisher. Pavlin has edited bestselling and award-winning authors including Tommy Orange, Yaa Gyasi, and Maggie O'Farrell.
A publisher official familiar with the decision and who spoke on condition of anonymity to share details about the restructuring process said the departures were part of a cost-cutting measure. No publisher will be able to replace Lucas in the pantheon, the person said.
The departure of the two high-profile publishers comes at a moment when Penguin Random House and other large publishers are facing financial difficulties due to rising supply chain costs and sluggish print sales. A recent report from the Association of American Publishers found that publisher sales were flat in the first quarter of 2024.
The past two years have been particularly turbulent at Penguin Random House.
The company has been struggling to maintain its dominance in the industry after its bid to acquire rival Simon & Schuster was blocked on antitrust grounds, which forced the company to pay a $200 million termination fee. In the aftermath, Penguin Random House's CEO at the time, Markus Dohle, resigned, followed soon after by its U.S. CEO Madeline McIntosh.
New CEO Nihar Malaviya has moved to cut costs through downsizing and restructuring and grow by acquiring smaller publishers. Last year, the company offered voluntary buyouts to long-term employees and laid off about 60 people.
Lucas and Arthur have both been stellar hires to the company in recent years. Lucas, Pantheon's first Black publisher in its 80-year history, was hired by the National Book Foundation in 2020 as the organization's executive director. At Penguin Random House, she published titles including Nana Kwame Adjei-Brenyah's “Chain-Gang All Stars,” which was a National Book Award finalist, and signed a two-book deal with LeVar Burton.
Arthur, a former publisher at Little, Brown, took over as publisher at Knopf in 2020, shortly after the death of Sonny Mehta, who led the publisher for more than 30 years. At Knopf, she oversaw the publication of Cormac McCarthy's last two novels and Gabrielle Zevin's huge bestseller “Tomorrow, and Tomorrow, and Tomorrow,” and personally edited bestsellers including Bono's memoirs “Surrender” and “Lessons.” A novel by Ian McEwan.
“It was an honor to finally work in publishing for a short time!!” Lucas wrote X Monday afternoon. “Who knows what’s next! Free contract! Shall we think about it tomorrow?”