Dotdash Meredith to Lay Off 4% of Workforce to Focus on Advertising Business.

Dotdash Meredith, owner of Investopedia, plans to lay off 143 employees, or about 4% of its workforce, to focus on growing its advertising business. The company will increase investment in projects that help it connect with audiences and advertisers, and expects to grow its headcount by 170 employees this year. This move follows similar layoffs at other media companies, including Associated Press and The Washington Post.

In a recent memo to its staff, Dotdash Meredith, the US's largest digital and print publisher, announced plans to lay off approximately 4% of its workforce, or 143 employees [1]. This decision comes amidst a challenging market environment and economic uncertainty, as the company aims to prioritize its biggest opportunities and streamline its cost structure [1].

The layoffs are not an isolated incident in the media industry. Other companies such as BuzzFeed, Vox Media, and Fandom have also recently enacted job cuts [1]. Dotdash Meredith's portfolio includes popular brands like People, Better Homes & Gardens, Investopedia, and Southern Living, reaching an audience of nearly 200 million consumers [1].

The company's third-quarter 2022 financial results revealed a decline in digital revenue, which stood at $221 million (down 13%) [1]. Print revenue also experienced a decrease, amounting to $251 million (down 24%) [1]. These figures, combined with restructuring charges, led to an operating loss of $95 million [1].

In hindsight, IAC, Dotdash Meredith's parent company, acknowledges that the timing of the acquisition was less than ideal [1]. Both Dotdash and Meredith have faced headwinds throughout the year, with soft traffic and a weaker-than-expected digital advertising market [1].

Despite the layoffs, Dotdash Meredith remains committed to growing its headcount by 170 employees this year [1]. The company will increase investment in projects aimed at connecting with audiences and advertisers, further strengthening its position in the digital media landscape.

[1] Source: https://variety.com/2023/digital/news/dotdash-meredith-layoffs-1235503253/