Seems like reasonable enough move. Phone cameras are a better fit for their level of journalism than pro photographers with DSLRs.
I agree. I was in the same trade for 15 years. We were drunken and drug addicted hacks at worst and skilled tradesmen at best. but admittedly we'd fluke the odd shot. My 60 or so former colleagues rarely resigned because outside of the trade they were unemployable. It is simply a stupid career choice and crap trade for anybody with any sense of morality. The majority of the work we did would be perfectly feasible with an iPhone or point and shoot.
Anything else requiring a modicum of expertise will no doubt be covered by contractors. ie former employees using their own equipment- at least till they file for bankruptcy.
Lets face it- everybody is a photographer these days.