Is the US media layoffs phenomenon the next housing crisis?
Al JazeeraThe media sector’s challenges amplify shadow banks’ toll on the US economy and mirror the 2008 housing crisis. A surge in private equity investments in media, experts said, has led to decisions that benefit investors but not always the companies and their employees, similar to the 2008 housing crisis and private equity’s ability to flourish during that time. G/O is not in a financially dire position, according to Spanfeller, who told Axios this year, “We’re not strapped for cash.” According to the Writers Guild of America East, which includes various unions representing editorial staff from multiple media firms, Great Hill Partners made an estimated $44m in revenue in 2023. Vanity Fair’s stern critique is because of the massive slate of layoffs at the papers Alden Capital owns, including the Denver Post, even as one of the company’s executives said “advertising revenue has been significantly better”, according to reporting from Bloomberg in 2018.
History of this topic
Layoffs: US Media Giant TelevisaUnivision To Slash 120 Jobs, Says Report
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Media layoffs and bankruptcy: The current crisis was born of digital media's original sin.
Slate
With layoffs, NPR becomes latest media outlet to cut jobs
NPR
US media rocked by massive job cuts amid economic gloom
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BuzzFeed, Vice and other outlets slash jobs in a challenging market for digital media
LA Times
US journalism benefiting from ‘game-changing’ investments: study
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