Executives at Meredith, the publisher behind brands like People, Better Homes & Gardens, All Recipes and Real Simple, announced widespread pay cuts today to weather the impact of Covid-19.
About 2,250 employees (45% of staff) will see a 15% pay reduction; another 750 employees (15% of staff) will have their pay cut by between 20 percent and 40 percent from May 4 to Sept. 4.
The remaining 2,000 employees won’t see a reduction in pay. Meredith will also freeze hiring and salary increases, and reduce its budget for freelancers.
Meredith is just the latest media company to retrench amid the business changes brought on by the pandemic. Condé Nast, publisher of Vogue, Vanity Fair and Bon Appétit, said last week it would implement pay cuts and that layoffs were likely. Tegna, which owns local TV stations, enacted furloughs and pay cuts earlier this month.
Temporary pay cuts have been a way for publishers to retain talent, with the expectation that their businesses will return to more solid footing by the fourth quarter. Revenue from advertising and in-person events, two major lifelines for media organizations, have taken a hit.