Al Jazeera America Is Shutting Down

FILE - In this Aug. 20, 2013 file photo, Al-Jazeera America editorial newsroom staff prepare for their first broadcast in New York. The Al-Jazeera America news network ousted its chief executive on Wednesday, May 6, ... FILE - In this Aug. 20, 2013 file photo, Al-Jazeera America editorial newsroom staff prepare for their first broadcast in New York. The Al-Jazeera America news network ousted its chief executive on Wednesday, May 6, 2015, with the little-watched network suffering key defections and a lawsuit charging an employee with anti-Semitism. The network's management said that Ehab Al Shihabi, who has run Al-Jazeera America since its 2013 launch, will be replaced immediately by Al Anstey. A veteran news executive, Anstey has most recently been managing director of Al-Jazeera English. (AP Photo/Bebeto Matthews, File) MORE LESS
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This story has been updated.

Al Jazeera America, the stateside arm of the Qatar-based broadcaster, is shuttering after less than three years, officials announced at an all staff meeting on Wednesday.

In a memo to staff obtained by The New York Times, Al Anstey, Al Jazeera America’s chief executive, said the board’s decision “is driven by the fact that our business model is simply not sustainable in light of the economic challenges in the U.S. media marketplace.”

““The decision that has been made is in no way because AJAM has done anything but a great job. Our commitment to great journalism is unrivaled,” Anstey wrote.

As many as 700 staffers will lose their jobs, sources at the company told CNN.

The American outpost for the Arabic-language channel was feted at its August 2013 debut, when the network’s founders pledged to counter the din of cable news with in-depth reporting and smart commentary.

But the network failed to gain traction in the American market, with its prime time broadcasts reaching only 20,000 to 40,000 viewers on a daily basis, according to CNN.

Al Jazeera was also racked by internal dysfunction and what one former senior executive called a “culture of fear.” Two ex-employees sued the company in 2015, accusing high-ranking staffers of anti-Semitism and sexism.

The network launched after Al Jazeera’s parent company bought Current TV, the struggling outlet founded by Al Gore in 2005, for $500 million in 2013 in a bid to enter the U.S. market.

The channel will shut down operations on April 30, but Al Jazeera still plans to “bring new digital content into America” in the digital realm, Anstey said at the announcement.

The network published an explosive and highly publicized report that Broncos quarterback Payton Manning used performance-enhancing drugs in late December. Manning strenuously denied the accusations.

Osama Saeed Bhutter, head of communications for Al Jazeera, said on Twitter he was “devastated” by the news.

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