Media company Brit + Co has laid off some of its staff because of its reorganization plans.
There were no details publicly released by the company about how many employees were laid off. The only clue into the number of job cuts can be found on the company’s web page. Today there are 78 employees; just a few months ago, in September 2017, there were 92 employees. The reduction amounts to about 15% of the total workforce of the company.
Even though there was growth in the business in 2017, the layoffs are to make the company much more efficient for the future. With reference to the job cuts, a company spokesperson said, “It’s been a very unpredictable time in the media industry, but we grew revenue by 50% in 2017 and are excited to continue to grow our already diverse revenue stream which, in addition to advertising, includes online classes, merchandising and experiential events.”
The business falls under the category of digital media. The company’s goal is to bring as many readers as possible to its web site in order to educate and entertain readers about make-up tips, fashion dos and don’ts, products that are available, and do-it-yourself projects. The primary target audience is the millennial woman.
What’s Next for the Digital Media Company?
The layoffs could be due in part to the recent hiring of Jill Braff as the new president of the company. In her previous position, Braff worked at Ellen Digital Ventures as a general manager. The president’s role includes overlooking the company’s revenue, marketing, and forming strategic partnerships. Ellen Digital Ventures was formed as a joint venture with TV personality Ellen Degeneres and entertainment company Warner Bros.
From a business standpoint, hiring Braff increases the company’s risk profile. Even though Ellen Digital Ventures is successful, it does not mean that having a former employee of that company as president of Brit + Co will translate into success. Also, it could mean initiating a new business strategy, since Braff will have a lot of power within the company.
To make things worse, last May, Brit & Co held a round of capital-raising, which brought in more than $40.0 million. This included $15.0 million from Verizon Ventures.
Since Brit + Co. is a private company, there is no telling exactly how the financials look. It does appear that that the initial business decisions made after the round of raising funds don’t seem to be quite working out.
“Brit + Co had a round of layoffs this month as part of a ‘reorganization’,” TechCrunch, January 13, 2018.