Over the weekend, the New York Post reported that more layoffs are expected at Conde Nast before year’s-end.
Following a tumultuous year that saw print runs downgraded, popular titles turned digital-only, and the exit of several of the publisher’s top editors, the company seems poised for more difficult times.
A source told the NYP's "Page Six" that Conde Nast is coming off a “terrible year” in which it stands to lose an estimated $100 million dollars.
Just last week, Conde Nast announced the launch of two new video channels to showcase its proprietary content and to position itself as a partner for potential advertisers, offering a one-stop-shop for the creation of original, targeted content.
And earlier this month, when Teen Vogue held its first Summit in Los Angeles, Conde Nast’s in-house event planning and marketing sector, 23Stories, handled the entire weekend. It was the first time 23Stories had overseen an in-house event of that kind.
The company has already laid off around 200 members of its Entertainment arm, along with a slew of editorial positions this year. The surprising bit about this news was that the layoffs are expected in the company’s digital sector.
The digital arm of Conde Nast is one area that continues to see growth, despite lean times. However, an insider told "Page Six" that the looming layoffs are a sign the company is in deeper trouble.
Just weeks ago, media darling BuzzFeed announced that it would be laying off members of its staff from the business side, noting a weak year in which the publication missed its target revenue by a margin.
Once, the promise of digital publishing seemed to be an anecdote to slow the steady death march of print publications. But the difficulty in monetizing online publications has caught up with the industry.
Despite efforts to rearrange and redirect business models, companies like Conde Nast will continue to feel the squeeze of a quickly changing, highly volatile media landscape.
