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NEW YORK — At around 11 a.m. Thursday, new Newsweek-Daily Beast chief executive officer Baba Shetty convened his first company-wide meeting at the magazine’s High Line headquarters. Editor in chief Tina Brown was by his side.
Earlier that morning, Brown told staff in a memo that Newsweek would publish 10 more issues before it abandons print on Dec. 31, the latest magazine to bet on a less-lucrative and so-far-unproven future strictly online. Newsweek Global is the name of the new, paid-subscription outfit.
The meeting was supposed to soothe the nerves of the 270-strong staff; the memo mentioned staff reductions. “We wish to reassure you the transition is well planned,” Brown wrote. Bagels and muffins were served. Lunch, staffers were told, was on the house.
Instead they left with more questions. Where will the layoffs come from? What departments would get hit, production or editorial? For an already streamlined staff that works at a breakneck pace to feed both a weekly magazine and a 24-hour Web site, sometimes staying late into the night to work on stories, it was hard to see where more cuts could be made.
Brown and Shetty didn’t specify the number of layoffs, nor when they would come.
“This was an unexpected way to meet everyone for the first time,” Shetty said, according to a source.
Brown was empathetic, but short on clarification.
“It was all boilerplate,” the source said. “Nobody really knows what’s going to happen. Some people know they’re safe, but, for others, it’s a question mark.” Later, a spokesman declined to go into specifics about layoffs.
Among publishers, the reaction was skeptical as to the implications for the rest of the industry. Newsweek, for instance, doesn’t have the economies of scale of a Condé Nast, Hearst or Bloomberg LP, which can sell advertising among many brands and combine printing costs. And seemingly, the print magazine had lost the support of owner IAC/InterActiveCorp., which is not the case at other publishers.
Print remains “a huge and powerful component” of business, said Condé president Bob Sauerberg.
“The digital business is increasingly more scalable,” he said. But, “I have a solid magazine, a solid Web and mobile business. These things are all additive.”
For readers, Newsweek was one of many choices at the checkout counter and online, and increasingly, after a controversial summer, it had even begun to lose the credibility that had long defined it, contended Bloomberg BusinessWeek editor in chief Josh Tyrangiel.
“At a certain point, you’re already saying, ‘Is this really the best version of this thing?’” he said.
While Time magazine invented the newsweekly genre, Newsweek, joining the scene in 1933, was a serious competitor through several decades, especially in its coverage of the Civil Rights Movement and Women’s Lib.
The Washington Post Co. bought Newsweek in 1961, but over the years it lost readers and relevance, as did other newsweeklies, to the Web. In 2008, stereo and FM radio magnate Sidney Harman bought it and two years later merged it with the Daily Beast, which Brown had launched with IAC chairman Barry Diller.
The Daily Beast was supposed to “power the resurgence of Newsweek,” Brown told The New York Times at the time, and, in turn, the striving Web site would get credibility and a ready audience of over one million print subscribers.
Over two years, Brown tried every spell in her bag of tricks to turbo-charge the magazine — a redesign, high-profile hires, sensationalistic covers, sexually suggestive produce, even missives from her own pen.
Since she took over, print subscriptions have increased about 3 percent, according to the magazine. And in August, the Daily Beast had 6.6 million uniques, its biggest traffic ever, according to comScore.