G/O Media laid off 14 employees Friday, becoming the latest media company to shed staffers or otherwise cut costs at the coronavirus pandemic decimates the American economy. G/O is the parent company of Gizmodo, Jezebel, Deadspin, The Onion and others.
A press release on the layoffs lead with the assertion that these 14 people who lost their jobs comprised less than 5% of the company’s workforce. The release also got statistical: The decision comes amid coronavirus concerns, where the publishing industry has seen a dramatic decrease in digital advertising spend — 33% according to a recent IAB Survey (IAB, C-19 Ad Spend Impact Survey). While G/O Media has noted increased traffic and higher eCommerce revenues, these positive results have not been enough to offset the increasingly deteriorating economic environment and considerable short-term loss of direct advertising revenue.”
CEO Jim Spanfeller said in a statement, “Following a comprehensive financial analysis and with an understanding that the economic environment will get worse before it gets better, G/O Media has, along with other belt tightening actions, made the difficult decision to eliminate some positions.”
Earlier this week, Vice reduced the workweek to cut salaries for employees who make over $100,000 per year and halted the matching of 401k contributions for 60 days while newspaper giant Gannett cut pay and implemented furloughs for journalists making over $38,000.