The layoffs began at the popular digital platform TheGrio. Christy Oglesby, Managing Editor of the online publication, was terminated in late April, along with several employees from the video and podcast divisions, first reported by The Wrap. TheGrio is one of many assets in media mogul Byron Allen’s portfolio, which includes 27 broadcast television stations across 21 markets, 12 cable networks, The Weather Channel, streaming platform HBCU Go and film studio Freestyle Releasing (47 Meters Down, Meet The Blacks).
For the last couple of years, Allen and the company he founded in 1993, Allen Media Group, have been on the hunt to broaden its marketshare. Yet, from Disney to Paramount Global, at every turn, Allen has been met with a stiff arm, citing disbelief he actually possessed the capital and financing to buy the assets in question.
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It is clear properties attached to conventional media that is rapidly declining to the ground-level of extinction are grasping for a lifeline through mergers and acquisitions of companies who have digital streaming assets and scale to potentially reach untapped markets. But even with the shuffle in Hollywood, the inevitable “restructuring” tactic to cut costs remains unavoidable. Allen Media Group is no exception.
From its 2,500-plus human capital, the company plans to terminate at least 300 employees in turn for over $100 million in savings. The reduction in workforce amounts to about 12%. It will be the first time Allen Media has laid off employees in its three decade history.
“Allen Media Group is making strategic changes to better position the company for growth that will result in expense and workforce reductions across all divisions of the company,” a spokesperson for Allen Media said in a statement.
The Allen Media rep continues, “Allen Media Group’s brands continue to perform well and in many areas our revenue growth has greatly outpaced the market. We are aligning these changes to drive future business opportunities and support our growth strategies in our rapidly evolving industry.”
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As is the case for not only Hollywood but also businesses in industries that heavily rely on ad spend, the revenue is not as reliable as it used to be and two reasons are because of the over-saturation of competition in the market and pressure for these businesses to turn a profit before quarterly earning reports.
The layoffs will continue to expand across divisions at Allen Media Group over the year, but the signs of the times prove this not to be an anomaly, whatsoever.
