COVID-19: Vox Media furloughs more than a hundred employees
Vox Media sets to furlough around 9% of its employees for at least three months. The company owns sites including Vox, The Verge, and New York Magazine. They have decided this as one of their several measures to cut costs after the pandemic has decimated its revenue sources. This will run from May 1 to July 31. It will also affect multiple departments including sales, events, production, IT operations, and editorial.
Vox Media furloughs more than a hundred employees.
Vox Media currently has 1,200 employees. With their decimated revenue sources, around a hundred people will face three-month-long furloughs. About 1% of the company’s personnel will also face reduced hours for the same time period which means reduced salary. However, the company will continue to cover the health benefits of the people affected by the furlough.
CEO Jim Bankoff announced this on Friday, April 17 through a memo to the staff.
“Everyone will feel the effect of the cost measures to some degree, but some considerably more than others. It’s our goal to treat those whose job status is impacted with the greatest possible care and support.”
Vox Media CEO and President set to take pay reductions.
Bankoff and Vox Media President Pam Wasserstein will take 50% pay reductions. The company has also implemented a leveled out salary reduction for many of its employees. Their staff who makes $130-thousand to $200-thousand will have a 15% pay reduction. Meanwhile, the ones with more than $200-thousand will have a 25% pay reduction. Aside from that, they will suspend 401K Retirement Plans to all employees for the rest of the year.
Why is Vox Media furloughing employees?
With COVID-19 at large, media companies like Vox Media had to make up for the loss of advertising revenue with furloughs, pay cuts, and layoffs. Brands across many industries have decided to stop marketing and advertising as it probably won’t translate to sales. This will also eliminate discretionary spending.
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Angela Grace P. Baltan has been writing professionally since 2017. She doesn’t hesitate to be opinionated in analyzing movies and television series. Aside from that, she has an affinity for writing anything under the sun. As a writer, she uses her articles to advocate for feminism, gender equality, the LGBTQIA+ community, and mental health among others.