Condé Nast Layoffs Lead to Job cuts
Condé Nast Inc. finds itself surrounded by rumors of further cuts and other shakeups, as a spokesperson has confirmed that more Condé Nast layoffs are on the way, though no further specifics have been released. Conde Nast Entertainment, an Advance Publications Inc. subsidiary, is one of the biggest losers in 2017, experiencing falling circulation and readership.
The result of fewer readers has naturally led to Condé Nast losses, with job cuts being implemented as a cost-cutting measure.
Condé Nast is one of the largest magazine publishers left standing in 2017, as several of its competitors have turned to new ownership or outside investors to help keep the business afloat. Perhaps the most prominent of these publishers is Time Inc (NYSE:TIME) which, was purchased by the Meredith Corporation for $2.8 billion in November.
But without the influx of cash, the company has had to make tough decisions throughout the year regarding its staff. Just over a month ago, the company cut hundreds during its latest round of Condé Nast Entertainment layoffs.
The layoffs come after the company had suffered mightily in 2016, with one of its flagship magazines, Glamour, losing 26% of its circulation year-over-year.
The consumer magazine market as a whole is down 5.6% in the six months leading up to December 2016 compared to 2015, according to ABC figures.
Condé Nast has tried different marketing techniques with Glamour of late, offering a bigger “luxury” format, but ultimately these moves fell flat. Another one of Condé Nast’s biggest performers, GQ, also fell 3.7% year-over-year.
Time Inc experienced roughly the same damage in 2016, its titles dropping by 7.6%.
Women’s fashion weeklies and celebrity magazines perhaps had the worst of it, each down about 15%.
The state of the industry has led to many publishers fighting to stay profitable, with Condé Nast layoffs coming as a result. The company reportedly shed $100.0-million.
“Our goal is to modernize and align our corporate functions to best support our brands and the company’s changing needs,” a spokesperson told the New York Post, confirmed reductions were on the way but not disclosing any numbers.
More Layoffs at Condé Nast in 2017
While more Condé Nast layoffs are to come, the company has already seen hundreds of cuts this year. The job cuts impacted many of the publisher’s biggest magazines, including GQ and Teen Vogue.
The Condé Nast revenue decline is a primary factor in the culling.
Earlier in the year, around seven people were cut from GQ’s editorial staff in the print and digital division. The Condé Nast job cuts then picked up steam, affecting around 80 people at Teen Vogue. The magazine had long had a questionable future, with its publication schedule trimmed from nine in a year to quarterly, then finally into digital-only.
The biggest single round of Condé Nast layoffs came when the company cut around four percent of its total workforce in March 2017, two months following an announcement that the company would be instituting restructuring plans. Around 100 people working on the business side of the company lost their jobs.
“Condé Nast suffers biggest audience decline as magazine market drops 6%,” Campaign, February 9, 2017.
“Condé Nast to announce layoffs after facing ‘terrible year’,” New York Post, December 17, 2017.