Dotdash Meredith is the latest media and tech company to announce layoffs, and the action will affect all parts of its operations.
On Thursday, a layoff memo sent out by CEO Neil Vogel and reviewed by TheWrap said the publisher was “making staffing cuts that affect 274 people, 7% of our total employees.”
Vogel noted the action was a “direct response” to conditions that span “broader challenges of the ad industry and of the economy as a whole.” The company also offered buyouts Thursday that would include severance of two weeks pay for each year of employment.
“For the next two weeks, we plan to consider requests for voluntary resignation, subject to discussion with the Guild,” the offer said.
Dotdash Meredith’s portfolio includes People, InStyle and Entertainment Weekly.
The New York Times confirmed with a spokesperson that “the cuts affected nearly all departments” at Dotdash, a subsidiary of Barry Diller-owned IAC, which combined with Meredith in a $2.7 billion 2021 merger. The publisher of Martha Stewart and Food & Wine has focused on digital publishing in lieu of print magazines, ending several titles’ print run.
“Like many businesses in our space, we have grown aggressively over the last few years, while also integrating our two companies,” Vogel wrote in his memo. “With the difficult market environment and economic uncertainty that lie ahead, we must prioritize our biggest opportunities and make sure we have the proper cost structure in place to pursue them.”
The union representing Dotdash Meredith employees emailed them the voluntary resignation and severance package notice from the company.
“The past year has been a time to take stock of our diverse holdings and prepare for our dynamic future. We realize though that some of you may be interested in pursuing other paths. For those of you ready to start a new journey, we are offering a unique opportunity,” reads the notice, reviewed by TheWrap.
“For the next two weeks, we plan to consider requests for voluntary resignation, subject to discussion with the Guild. Those whose requests are approved will receive severance pay and subsidized COBRA continuation,” it continues, adding the severance packages consists of “two weeks of base pay for each full year of service” with maximum payout capped at 52 weeks of base pay. “Those with 20+ years of service are eligible for additional weeks of pay,” the memo said.
