New York Times and About: Layoffs
October 6, 2011
Is it possible that Google’s search algorithm changes are hurting more than just the average search user?
About.com posted weak revenues in the most recent quarter and attributed the lag to changes in Google search and slow ad sales. The site’s revenues dropped 10.2 percent in the last quarter. In hopes for some stability, The New York Times’-owned company recently laid off 15 editorial staffers and will be hiring 10 replacements as they reconstruct the site’s mission.
Yahoo News’ article, “About.com lays off staffers; hires replacements” shared more about the changes. We learned:
[Kristin Mason, a spokeswoman for the internet company, said] 10 new full-time positions will be created, with outgoing staff members to be given “first-priority” to apply for the new posts. She said many are expected to be rehired. The organization will be broken into four groups: Guide Operations & Recruitment, About Editorial & Quality Review, Site Review and Community Tools. This is intended to improve the site’s focus and quality.
Even with promises of “first-priority” for outgoing staff members, there will still be five positions completely cut from the company. To me, this doesn’t look like simple reconstruction with hopes for stability. This looks like brute force cost reduction in its purest form.
Publishers who hope for stable ad revenues going forward may want to consider the plight of the Gray Lady. If the New York Times can’t sell ad, how will lesser publications’ ad sales teams do in the last quarter of 2011 and the first six months of 2012?
Andrea Hayden, October 6, 2011
Sponsored by Pandia.com
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