Tech contagion spreads to US media, Vox latest to cuts jobs after CNN, Washington Post

Buzzfeed, NBC News and MSNBC are some of the US media firms that have announced layoffs (Representative image/Shutterstock)

The layoff tremors are spreading in the United States where technology companies have been on a firing spree. Media firms, too, have joined their tech counterparts, with Vox latest to announce job cuts.

The company, which is the publisher of news portals such as Vox and The Verge, along with the New York Magazine, will let go 130 employees, a memo shared by chief executive Jim Bankoff said.

The announcement comes days after big names such as CNN, The Washington Post, NBC, MSNBC News and Buzzfeed said they would slash their staff strength.

Bankoff, in the memo sent to Vox staffers on January 20, said "7 percent" of the current workforce would be laid off. This amounts to an estimated 130 out of the 1,900 staffers, US media reported.

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It is the economy, stupid

The job cuts were a result of a "challenging economic environment impacting our business and industry", CNN quoted Bankoff as saying.

The company was expecting "more of the same economic and financial pressures that others in the media and tech industries have encountered", Bankoff reportedly said.

The announcement drew flak from the union representing Vox employees. "We're furious at the way the company has approached these layoffs, and are currently discussing how to best serve those who just lost their jobs," it said in a tweet.

We were informed today that the company is laying off around 7 percent of its workforce, and some of our members have been impacted.

We're furious at the way the company has approached these layoffs, and are currently discussing how to best serve those who just lost their jobs.

— VOX MEDIA UNION WON A FAIR CONTRACT (@vox_union) January 20, 2023

The layoffs have been attributed to the global headwinds, with growth rates dwindling and monetary policies being tightened to tame inflation.

International Monetary Fund (IMF) president Kristalina Georgieva said a recession could hit a third of the world this year, whereas. The World Bank in its latest report warned that the geopolitical factors and economic conditions "could push the global economy into recession" in 2023.

CNN layoffs

US media giant CNN on November 30 said would lay off hundreds of staff due to the prevailing economic and business conditions.

The company did not reveal the exact number but described the decision as a "gut punch". "It is incredibly hard to say goodbye to any one member of the CNN team, much less many," chief executive Chris Licht said.

Washington Post

The Washington Post, one of the leading American dailies with a significant online presence, said in December 2022 it would be forced to cut jobs amounting to a "single-digit percentage" of its 2,500-strong workforce.

The Post, which was bought by Amazon founder Jeff Bezos in 2013, also shut down the Washington Post Magazine in December, as it has decided to shift focus to global and digital platforms.

Buzzfeed

Buzzfeed, a digital news and entertainment conglomerate, in December announced it would reduce its staff strength by 12 percent, which amounts to about 180 employees.

NBC and MSNBC

NBC News and MSNBC on January 14 said they would be cutting down job roles in "double digits". While the precise number was not spelled out, CNN said around 75 job roles were on the line.

Vice Media sale

Job losses are also feared as Vice Media goes up for sale. On January 20, CEO Nancy Dubic told the staff that the company was offering itself to be sold.

Newsroom strength in the US has been dwindling over the past several years. According to Pew Research, the employment numbers fell from 1,14,000 in 2008 to 85,000 in 2020. And, it is far from over.