Condé Nast Expects Layoffs, Cuts Pay for High-Earning Staff – Variety
Media and publishing firm Condé Nast, citing the financial influence of the COVID-19 disaster, is making a collection of cutbacks for high-salary staff and is anticipating making some layoffs.
The collection of cost-cutting measures consists of pay cuts of 10%-20% for these making $100,000 or extra yearly — whereas CEO Roger Lynch is taking a 50% pay minimize; decreased schedules for some staffers; and a few quantity of layoffs.
Lynch, who joined the corporate a couple of yr in the past after turns at Pandora and Sling TV, outlined the steps the corporate is taking in an inner memo Monday. (Learn the complete memo under.)
“We aren’t alone in needing to take actions like this,” Lynch wrote within the memo. “Firms all over the world are all going through comparable challenges and responding accordingly. However that doesn’t make this course of any simpler.”
The New York-based firm, whose titles embrace the New Yorker, Wired, Vogue, Vainness Truthful and GQ, as about 6,000 staff worldwide.
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Lynch didn’t specify what number of layoffs Condé Nast expects to make however mentioned “we do anticipate there will likely be some function eliminations as a part of these efforts.” He added that the corporate has already closed a number of hundred open positions and has frozen hiring apart from “solely to probably the most vital roles.”
Learn Lynch’s full memo:
To our Condé Nast group,
For these of you who celebrated the current Passover or Easter holidays, and for many who should be out in the present day, I hope you’ve had the chance to spend time along with your households and family members – whether or not just about, or in individual. Whereas we’re working from dwelling, we nonetheless have to take time to recharge.
As I’ve shared in my current emails, we’ve been working to evaluate the influence of the COVID-19 disaster on our enterprise and to reset our monetary plan for the yr. That work has concerned modeling a number of totally different eventualities. Whereas we aren’t as solely depending on print and digital show promoting as a few of our rivals, globally, we’ll nonetheless see a considerable influence from this disaster on our enterprise. The ELT and I acknowledge it’s very probably our promoting shoppers, customers, and due to this fact our firm, will likely be working beneath important monetary strain for a while. Consequently, we’ll have to transcend the preliminary price financial savings measures we put in place to guard our enterprise for the long run.
Right this moment, I’m outlining some further actions we’re taking to stability the wants of our folks and our firm, as our persons are a very powerful a part of our firm. I acknowledge these are extraordinarily difficult instances each personally and professionally, and that any quantity of added uncertainty is hectic. As a management group, we’ve continued to work to do all the things potential to guard jobs, restrict influence to decrease wage earners, and proceed to offer advantages to people and their households via this time. Right here’s an summary of what you’ll be able to anticipate on the international stage:
Momentary wage reductions: To start out, we’re implementing non permanent wage reductions for all those that earn a base wage of at the least $100Ok USD (or equal). This motion will begin on the high. I’ll take a 50% discount of my base wage, as will the exterior members of our board. The remainder of the ELT will scale back their base salaries by 20%. For many who make $100Ok or above, reductions will vary from 10%-20% of base wage, relying on compensation stage. These modifications will go into impact on Could 1 and can final for a interval of 5 months, via the tip of September. Our Folks/HR groups globally will work to implement these changes in keeping with native employment legal guidelines and laws, updating agreements and dealing with union representatives as wanted.
Furloughs and decreased working schedules: We can even work to implement decreased working hours and work week schedules (e.g. three to four-day work weeks) for sure roles, particularly the place authorities packages and stimulus packages may help complement staff’ earnings. These selections will likely be made regionally in markets in accordance with out there authorities packages. Together with the wage reductions famous above, these are actions that can assist us protect jobs and advantages.
Potential job and function eliminations: Lots of you may have been asking whether or not there will likely be any job eliminations. Whereas we contemplate it a final choice, we do anticipate there will likely be some function eliminations as a part of these efforts. We’ve already closed a number of hundred open positions and restricted hiring solely to probably the most vital roles. Function eliminations are by no means one thing we take frivolously, and we’ll proceed to work to restrict this as a lot as potential.
Mission deferrals: Past the employment measures outlined above, we’re additionally deferring a number of initiatives to scale back workloads on groups, and to focus us on fast priorities. Some examples of world initiatives which have been deferred or reprioritized for now embrace: our additional Workday implementation for Finance and HR; the on-boarding of further markets onto Copilot this yr; the additional outfitting of world inner occasions areas; and, the worldwide worker intranet – all of which will likely be deferred to 2021.
Native leaders will observe up within the coming days and weeks to speak particular actions in your markets and groups. We need to act swiftly and thoughtfully, so this course of isn’t dragged out. Whereas we’ll at all times have the necessity to make changes to our organizational construction and group to optimize our enterprise, we anticipate to finish communications associated to those actions by the tip of Could.
We aren’t alone in needing to take actions like this – corporations all over the world are all going through comparable challenges and responding accordingly. However that doesn’t make this course of any simpler. I perceive the influence this may have on a lot of our group members, and I admire all of you who will be part of me in taking non permanent wage reductions, so we are able to restrict that influence as a lot as potential.
Over the previous few months, I’ve mentioned repeatedly how proud I’m of this group. That’s much more true in the present day, as we embark collectively on these actions in an effort to guard our enterprise for the long run. Our efforts to diversify our enterprise mannequin and develop shopper income are serving to us climate this difficult time, and we should proceed to focus and adapt our enterprise in that route. I do know you should have questions on in the present day’s bulletins. The ELT and I are standing by able to reply them. We could not have all of the solutions in the present day, however we’ll do our greatest to offer as a lot info and readability as potential.
Thanks to your assist throughout this vital time for our enterprise. I want you and your family members good well being, and sit up for the day once we can meet once more in individual.