Media bloodbath escalates with more layoffs and shutdowns
Severe financial turmoil in the media world is continuing with more shutdowns and layoffs taking place this week.
Axios is laying off some 50 staffers, CEO Jim VandeHei announced Tuesday in an internal memo.
VandeHei told his workers the outlet would be nixing 50 positions to “get ahead of tectonic shifts in the media, technology, and reader needs/habits.”
“This is a painful but necessary move to tighten our strategic focus and shift investment to our core growth areas,” he wrote.
“We’re making some difficult changes to adapt fast to a rapidly changing media landscape.”
VandeHei noted he sought to break the news to each staffer individually, “but the mechanics of that proved infeasible.”
“Today is a sad day, and our full emphasis will be on handling a hard moment with grace, empathy, and honesty,” VandeHei added. “Our departing colleagues will be treated with great respect, and with thoughtful severance packages to provide runway toward their next opportunity.”
The CEO is taking full responsibility for the slashing, indicating: “The right way to handle this is forthrightly and transparently.”
“This isn’t a reflection on anyone’s work – it’s because of changes in the media business,” he said. “If you’re understandably upset by the decision, please direct your frustration at me.”
“Meanwhile, two venerable TV trade publications, Broadcasting & Cable and Multichannel News, will shut down, according to their owner Future Plc, citing the ‘rapid transformation’ of the industry,” the Hollywood Reporter explained. “The Broadcasting & Cable Hall of Fame will continue, even as the print magazines and newsletters of the trade outlets end.”
“The outlets long served as a training ground for media and entertainment reporters, and as bibles for the broadcast and cable TV industries, with B&C tracing its print edition all the way back to 1931, when it launched as Broadcasting magazine.”
Also Tuesday, Ziff Davis acquired CNet from Red Ventures for about $100 million. CNet had been previously acquired by CBS for $1.8 billion and later sold to Red Ventures in 2020 for $500 million.
“The sharp decline in value underscores the perilous media moment,” said Alex Weprin at the Hollywood Reporter, adding, “It is not immediately clear what will happen to CNet staff.”
“The turbulence, from fire sales to shutdowns to layoffs, also coincide with an advertising market that continues to struggle. And given the cuts made earlier this year, it suggests that the changes are far from over.”
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