Dotdash Meredith, the IAC publishing division whose brands include People, EW, Real Simple, and Better Homes & Gardens, is the latest media company to lay off workers as ad spending falls and “economic uncertainty” looms, according to CEO Neil Vogel in a memo to employees on Thursday.
Dotdash Meredith was formed in the fall of 2021 as a result of IAC’s $2.7 billion acquisition of Meredith. The company announced in February 2022 that six titles — EW, InStyle, EatingWell, Health, Parents, and People en Espaol — would discontinue print editions and transition to digital-only publishing.
“Like many businesses in our space, we have grown aggressively over the last few years, while also integrating our two companies,” Vogel wrote in the memo. “With the difficult market environment and economic uncertainty that lie ahead, we must prioritize our biggest opportunities and make sure we have the proper cost structure in place to pursue them.”
Dotdash Meredith claims to be the largest digital and print publisher in the United States, reaching nearly 200 million consumers. People, Better Homes & Gardens, Verywell, Food & Wine, The Spruce, Allrecipes, Byrdie, Real Simple, Investopedia, and Southern Living are among its titles.
On a pro-forma basis, Dotdash Meredith’s digital revenue was $221 million (down 13%) and print revenue was $251 million (down 24%) in the third quarter of 2022, according to IAC. The division reported an operating loss of $95 million in the quarter, compared to an operating income of $7 million the previous year, due to restructuring charges.
IAC is expected to report fourth-quarter 2022 results after the market closes on Feb. 13.
