SouthComm, Inc. is going to reduce its editorial staff by 25%, which will impact employees working in the Nashville, Tennessee office. This announcement came only one month after the founder and former CEO, Chris Ferrell, stepped down.
SouthComm is in the media and publishing segment of the market and its business model is very simple: get as many eyes reading its written material and sign up as many advertisers as possible to earn revenue.
However, this is a difficult business environment to operate in because of the changing business model and low readership numbers. The result is that fewer companies are willing to spend their advertising dollars on SouthComm. For example, the company owns local weekly newspapers, which are seeing less readership due to less interest in local news. Also, most individuals nowadays receive their local news through online social media platforms, which creates less demand for local newspapers.
More SouthComm Job Cuts Ahead?
SouthComm CFO Bob Mahoney said, “SouthComm is in the midst of a changing of a guard, at all levels of the organization.” He also added in the press release for these recent job cuts that it is not the first nor the last for the company. This is because there are a lot of changes seen in the media and publishing sector.
SouthComm is looking to sell off some of its assets and make the company smaller. At the end of the day, only high-performing good-quality assets would be owned. Unfortunately, this may result in more job cuts by the company since jobs will be moved to another company once a division is purchased. If there is no buyer, the company may shut down its operations, which also results in more SouthComm job cuts.
The only thing that would not change for the company is the focus of creating high-quality relevant material.
Is Anyone Safe in the Company?
Anyone working in the company could easily be fired. Evidence of this is the departure of the founder and former CEO of the company. This was a result of SouthComm being funded by the private equity firm, Solidus Private Equity. Vic Gatto, partner at Solidus and chairman of SouthComm’s board, came out and said, “a change in strategic direction” was the reasoning behind Ferrell’s departure.
Since the founder of the company was let go by the company, no one is safe.
“SouthComm Makes Cuts; Scene Editor Steve Cavendish Laid Off,” Nashville Scene, November 30, 2017.
“SouthComm Founder and CEO Steps Down,” Folio Mag, November 6, 2017.