The media industry has been hit by a spate of layoffs and cost-cutting measures as the advertising market continues to show significant decline.
Why it matters: For many companies, the challenges are similar to those that started the pandemic. But now, limited government programs and subsidies from Big Tech companies are available to help.
- An unprecedented number of people will be laid off in 2020. But last year, job losses were the lowest since 2008.
- More than 3,000 jobs were cut in October this year, according to data from Challenger, Gray & Christmas – and more to come.
Running a story: Almost all the major gaming giants are planning to sweep in the next few weeks. Many of these companies have invested heavily in new revolutionary products that have yet to pay off.
- Warner Bros has continued to lay off workers, in part to pay off debt incurred by the merger that created the new company earlier this year. CNN CEO Chris Licht warned employees last week that the network will see more layoffs starting next month, sources told Axios.
- Paramount Global, parent to CBS, MTV, VH1 and many other networks and advertising services, began to reduce work last week, especially in advertising sales, on the Deadline.
- The Walt Disney Company last week announced layoffs, layoffs and other cost-cutting measures, as the company continues to struggle with rising advertising costs.
- Comcast Pictures Cable unit broke last month. Its entertainment division, NBCUniversal is being laid off and is expected to cut less than 10% of its workforce, according to The Wall Street Journal.
- Roku it said last week it plans to cut about 200 jobs, representing about 5% of its workforce.
Between the lines: Digital advertising is vulnerable to ad shortages, as digital advertising contracts are often easier to pull at the last minute than traditional television advertising contracts.
- Procedure, the tech news site that was spun off from Politico in 2020, will shut down at the end of the year, according to a company-wide memo obtained by Axios. About 60 employees have lost their jobs.
- Morning Brew, A business media company that caters to Millennials, plans to lay off 14% of its workforce due to market uncertainty, memo it was sent from its CEO to employees last week.
- External Media, The media company, which has many foreign interests, laid off 12% of its workforce last week, following a 15% cut in May, according to Adweek.
- Vice Media CEO Nancy Dubac he told the staff plans to cut costs by “15%” following the cuts earlier this month.
- Recurrent Venturesthe digital marketing firm, laid off 52 employees in October.
What we see: Experts are particularly concerned about what the recession could mean for the newspaper industry, which is facing significant redundancies and operating costs due to the pandemic.
- Gannettparent company to USA Today, last week he said is preparing for another round, in addition to layoffs, after laying off 400 people in August.
Go deeper: A harsh winter is coming for the US media industry