Morning Brew, a digital news outlet targeting millennials, is laying off 40 employees in a second round of layoffs since November 2021. CEO Austin Rief wrote in an internal note that the layoffs were part of a cost-cutting initiative to prepare the business for the next stage of growth in the volatile advertising market.
Departing staffers will receive 10 weeks of severance and support benefits, and Morning Brew is working with parent company Axel Springer to refer employees to other portfolio companies with open roles. The media and tech industries have seen numerous layoffs this year due to a slowdown in advertising.
The digital media industry has been particularly hard hit by the economic fallout from the COVID-19 pandemic. Advertising budgets were slashed as companies faced an uncertain economic future, leading to revenue declines across the media sector. This has put pressure on digital media companies like Morning Brew to cut costs and streamline operations to remain competitive.
Despite the challenges, Morning Brew has continued to grow its audience and expand its offerings. The company recently launched a premium subscription service, Morning Brew Premium, which offers exclusive content and perks to subscribers. The service has been well-received by readers and is seen as a potential revenue stream for the company.
In his note to staff, Rief emphasized that the layoffs were necessary to position the company for long-term success. “I understand that this is not the news anyone wants to hear, but I want to be clear that this decision was not made lightly and was a necessary step to ensure our business is healthy and sustainable for the long term,” he wrote.
Despite the layoffs, Morning Brew remains a significant player in the digital media space, with a loyal following of young professionals and a reputation for smart, engaging content. The company will now look to move forward with a leaner staff and a renewed focus on growth and innovation.
