Fortune magazine has laid off 35 employees globally — about 10% of staff on its payroll — and instituted pay cuts for its executives, a company spokesperson confirmed to TheWrap on Tuesday.
“Fortune made the painful but necessary decision to reduce our staff today,” the spokesperson said. “Approximately 10% of our payroll was affected, distributed across departments. Affected employees will receive severance packages, as well as an additional month of medical benefits, including mental health services. Our CEO will be taking a 50% reduction in compensation to further alleviate the financial strain we’re facing, while the rest of the executive team takes around a 30% reduction.”
The decision was made in light of the economic downturn caused by the ongoing coronavirus pandemic, which has rapidly diminished advertising revenue at newsrooms and media companies across the country.
On Monday, Condé Nast — the publisher of The New Yorker, Vogue and Vanity Fair — also announced pay cuts, furloughs and potential layoffs across its various publications. On Tuesday, Valence Media began deep staffing cuts at The Hollywood Reporter, Billboard and Vibe magazine, while the Los Angeles Times furloughed 40 staffers on its “business side” and instituted pay cuts for some nonunion managers on Tuesday. Vox Media is also reportedly expected to furlough about 100 employees this week.