SpinMedia, owner of VIBE magazine, is laying off a chunk of its staff and cutting a number of its smaller web properties due to a lack of profits.
Reports the New York Post:
SpinMedia, the digital celebrity and pop culture network that owns Vibe and the Spin, is expected to lay off 15 percent of its workforce, about 30 people, and cut loose about eight of its smaller websites.
Chief Executive Dale Strang told staffers Wednesday he planned to convert sites from owner-operated to partnerships — a move that will still keep them in the ad network but make them independent.
Strang wouldn’t identify the sites, although one of them appears to be absolutepunk.com.
Absolutepunk Senior Editor Drew Beringer tweeted, “Layoffs: the company has no money.”
Strang, who was a general manager at Vibe, which was acquired by SpinMedia in April, is the third person to hold the CEO job in less than a year. His succeeded Steve Hansen, who had been promoted to the gig last December.
Apparently, SpinMedia’s layoffs back in February were part of a plan to cut costs that unfortunately didn’t work. Thus the new round of cuts.
VIBE was purchased by SpinMedia, formerly Buzzmedia, in April, and it was announced that the magazine would become online only. However, last month it was revealed that the long running publication would be publishing on a quarterly basis.
For now, SpinMedia’s high traffic sites like VIBE, Spin, CeleBuzz and Idolator should continue to thrive.