
It's not often Matt Drudge posts a headline about a company laying off fewer than 20 workers--especially nowadays. He did it today with Gawker Media's announcement 19 employees would be released while the company would ditch its traffic based writer bonus payments and readjust its priorities. Gawker's announcement is more important than just the 19 jobs lost because of what it says about the economy via-a-vis new media companies.
A little background here. Gawker Media is the company responsible for Gizmodo, Fleshbot, Defamer, Jalopnik, Kotaku, Lifehacker, Valleywag and Gawker (the up-to-date list is tough to compile as there are conflicting lists on Gawker's own sites). As David Carr pointed out in the NY Times, Gawker's definition of journalism is decidedly not old school.
"...a chain of professionally staffed blogs that eschewed media conventions like, oh, fairness and reporting, for brutal, well-turned takes on fairly mannered industries.
Where Gawker is old school is its pursuit of cash and fear of a flat economy. As published on Radar, Gawker's chief Nick Denton minced few words in defending his defensive position even while year-to-year revenue is up 30%.
"But now the credit crisis is clearly going to affect every sector of the economy. Advertising buys typically plunge after the Christmas shopping season, and 2009 is obviously going to be exceptionally difficult. We have to prepare for the worst, now, rather than when the worst comes upon us."
Among the Gawker blogs set to take the biggest hit is Consumerist--a personal favorite and daily must-read for me. Yesterday, in an open letter to his readers, editor Ben Popken revealed he'd be ...