Not to be outdone by Big Tech, the media sector is also battling a series of shocking layoffs.
What happened: Postmedia, one of Canada’s largest media brands and owner of outlets like the National Post and Financial Post, is laying off 11% of its editorial staff as it deals with slumping ad spends, rising costs, and print circulation going the way of the dinosaurs.
- The company is also moving Saskatchewan-based employees to remote work, shifting some papers to digital-only, and selling its Calgary Herald building.
Catch-up: Postmedia is far from the only news outlet feeling the pain. The layoff storm has been brewing since last year, triggered by disintegrating ad spending in the face of economic uncertainty. This past week, The Washington Post and Vox Media announced layoffs too.
- While global ad spending is projected to increase modestly this year, spending on traditional media (like saaaay legacy news outlets) will be “flat at best.”
Why it matters: The media industry is in an "existential fight" for its life, one Postmedia executive implied. As ad dollars dwindle, national newsrooms are faltering while non-traditional outlets, like emerging newsletter startup Puck and personal Substacks pick up traction.