Over 1,000 Digital Media Journalists Laid Off
If the actions of Buzzfeed and Verizon Media Group are anything to go
by, these are hard times in the digital media space. Within hours of
each other, the two online media outfits have announced they will be
laying off hundreds of employees.
Over at Verizon Media Group, the
wholly-owned subsidiary of Verizon Communications will pink-slip 7% of
its global workforce. Verizon Media Group, which until December was
known as Oath, had more than 11,000 employees at the close of 2018.
Approximately 800 employees are expected to be affected by the
restructuring plan according to the Wall Street Journal.
Restructuring Will Enable Verizon Adapt to the Future
announcing the layoffs, the CEO of Verizon Media Group, Guru Gowrappan,
indicated that the decision was made with a view of making the
subsidiary more competitive:
While every business unit
has to manage their P&L, these decisions are being made to
streamline resources and invest in opportunities that will help us grow.
Verizon Media Group largely consists of brands that Verizon Communications took over after acquiring Yahoo and AOL. Some of the well-known brands include news sites such as TechCrunch and HuffPost and social media platform Tumblr.
investments in the media business running into billions of dollars,
Verizon Media Group has struggled. In the most recent reported quarter
revenues fell by 7% compared to the previous quarter to come in at $1.8