G/O Media laid off 14 employees Friday, becoming the latest media company to shed staffers or otherwise cut costs at the coronavirus pandemic decimates the American economy. G/O is the parent company of Gizmodo, Jezebel, Deadspin, The Onion and others.
A press release on the layoffs lead with the assertion that these 14 people who lost their jobs comprised less than 5% of the company’s workforce. The release also got statistical: The decision comes amid coronavirus concerns, where the publishing industry has seen a dramatic decrease in digital advertising spend — 33% according to a recent IAB Survey (IAB, C-19 Ad Spend Impact Survey). While G/O Media has noted increased traffic and higher eCommerce revenues, these positive results have not been enough to offset the increasingly deteriorating economic environment and considerable short-term loss of direct advertising revenue.”
CEO Jim Spanfeller said in a statement, “Following a comprehensive financial analysis and with an understanding that the economic environment will get worse before it gets better, G/O Media has, along with other belt tightening actions, made the difficult decision to eliminate some positions.”