NewsWeek Shuts Down, and Revenue is at a Steady Decline
November 18, 2010 § Leave a comment
The Beast is the survivor, said Stephen Colvin, the company’s new CEO, “Because the Daily Beast is a very credible and successful news and opinion Web site. And with great vitality and distinct voice.”
The site will publish Newsweek.com-branded content, and Newsweek.com traffic will be directed there.
Newsweek CEO Tom Ascheim, who enhanced Newsweek digitally, is leaving the company, while the rest of the staff, who are managed under Tina Brown, the Daily Beast’s founder. Unfortunately, with the decline in revenue, there have been constant layoffs left and right through the Newsweek company.
One of the keys behind the Newsweek deal from the Daily Beast’s perspective, was getting a print vehicle to leverage ad sales. However, ad sales have been down thirty percent, which adds (to the staff of roughly 320 employees) weariness about more layoffs. To make up for the 38 million in losses, Newsweek’s staff especially, braces itself for more loses.
The digital staff is utterly confused. With no direction from anyone in power, the staff is left “in the dark,” as no specifics about where to go from here.