Time The magazine is cutting 22 jobs across all departments, including editorial, technology, sales and marketing, and TIME Studios.
In a memo to employees announcing the layoffs on Tuesday, Time CEO Jessica Sibley cited business challenges including lower advertising budgets, competition and changes in consumer behavior, as well as a shift in focus to higher-growth coverage areas including climate, AI and health.
“Like our competitors, we continue to face significant challenges – from increased competition for shrinking advertising budgets to dramatic shifts in consumer behavior, changes in search and social algorithms, and general economic uncertainty. We are now making changes companywide to protect ourselves against this period of change and unpredictability in the media industry,” Sibley wrote in the memo.
At the end of July, Dave O’Connor, President of Time Studios, said he restructured the division into one team in light of the difficult market for scripted and unscripted content.
The magazine removed its paywall last year to generate more advertising revenue. In January TimeThe Edit union said 15 percent of its members would be affected by layoffs as a result of a wave of cuts.
Full memo:
Team,
Today we’re sharing that we’ve made the difficult decision to eliminate 22 positions across multiple departments, including Editorial, Technology, Sales & Marketing and TIME Studios. People & Culture sent calendar invitations to all employees impacted by this decision this morning and will be holding meetings with those individuals and their managers today. It’s incredibly hard to say goodbye to our talented colleagues. We’re deeply grateful for their contributions to TIME’s culture, mission and legacy and will support them closely during this transition.
This decision was not easy for us, but it is necessary to build a sustainable company to advance TIME’s mission. We have made this decision now for several reasons:
First, like our competitors, we continue to face significant challenges – from increased competition for shrinking advertising budgets to dramatic shifts in consumer behavior, changes in search and social media algorithms, and general economic uncertainty. We are currently making company-wide changes to prepare for this period of change and unpredictability in the media industry.
Next, we must recalibrate and adjust our organizational structure to shift resources to our biggest growth opportunities. At the highest level, we must take full ownership of leadership. This is the unifying theme of the most important, impactful, and commercially successful work we do at TIME. Sam will continue to make leadership the lodestar for our editorial team. We will focus our work on promoting and reporting on leaders at every level; supporting and holding accountable the leaders who are changing our world; inspiring emerging leaders. We will also provide journalism that serves those current and future leaders. We will focus in particular on the leadership areas where we are succeeding today: climate, AI, and health.
This focus will be the foundation for the key business changes underway. We are driving revenue growth through direct-sold advertising sponsorships and strategic partnerships, which will remain a focus as part of our transition to a B2B revenue strategy. To build on this momentum, we will also prioritize scaling our events business – which has grown significantly in the number of events we produce and advertising partner acquisitions – by leveraging TIME Studios to expand our offering of branded content and products and drive new revenue streams, including expanding social media advertising and expanding our global presence through local language licensing. We will continue to pursue new strategic partnerships and build on our success with partners like Taboola, Statista and our recent agreements with AI companies that further secure the future of TIME and our trusted journalism.
Finally, to improve our financial position, we must continue to operate as efficiently as possible. We have worked diligently to reduce our operating costs by cutting discretionary spending, reallocating resources from declining business areas, limiting the use of contractors, transitioning to remote work outside the U.S., and evaluating options for a smaller New York headquarters.
I understand that this news is upsetting. We are asking all employees to work from home today while you process this news. Managers and members of the People & Culture team will be available to provide further information in the coming days. We will also meet as a company in the first week of September to talk about TIME’s strategic path and answer your questions.
Our work is not easy. Together, through our efforts to build a sustainable and profitable company, we can continue to fulfill and expand our mission into the next century. I am grateful for your commitment to TIME’s transformation and future.
Thank you very much,
Jess
