Penske Media Corporation (PMC) is set to undergo a new round of layoffs following revenue losses in the fourth quarter of 2022. The Hollywood Reporter (THR), one of PMC’s legacy publications, fared particularly badly in the challenging advertising environment, with the trade experiencing catastrophic losses. PMC has already seen significant reductions in headcounts due to the COVID-19 pandemic, and more recently, a stock-only deal with Eldridge. The latter led to a decrease in corporate expenditures across PMC and a reduction in freelance and travel budgets at Variety. The layoffs are expected to affect THR, which is viewed as the less favored PMC entity because it is a joint venture.
PMC spokespersons declined to comment on rumored layoffs and contested revenue loss figures. Moreover, PMC’s recent investments in Vox Media and Dick Clark Productions propelled it to be one of the largest media companies in America.
However, with the ongoing WGA strike, it is expected that this will exacerbate the economic uncertainty for PMC sue to various production stoppages across Hollywood and beyond. It is also anticipated that there will be lower spending during the next Awards season.
The proposed downsizing of THR is just one of several media companies laying off significant portions of their staff, including Buzzfeed, Insider, and Vox Media.
