At a Glance
- Axios is cutting 10% of its newsroom staff, affecting about 50 employees
- The layoffs hit reporters, editors, and video producers across national, local, and policy teams
- CEO Jim VandeHei cites “brutal” digital-ad market and AI competition for reader attention
- Why it matters: The cuts show even fast-growing digital outlets aren’t immune to industry-wide revenue pressure
Digital-news outlet Axios is eliminating roughly 10% of its newsroom, trimming about 50 positions company-wide, according to a note Chief Executive Jim VandeHei sent to staff Amanda S. Bennett obtained.
The reductions land across Axios’s national, local, and policy desks and include reporters, editors, newsletter authors, and video producers. VandeHei blamed a “brutal” advertising climate and mounting competition from generative-AI search tools that siphon traffic.
“These are good people in a tough market,” he wrote. “We will help them land on their feet.”
Layoff Scope and Timeline
Affected employees were notified Wednesday morning and will receive severance, continued healthcare through 2024, and outplacement support. The company declined to specify exact totals, but people familiar with the matter told News Of Los Angeles the head-count reduction equals roughly one-tenth of the newsroom.
Axios had expanded rapidly since its 2017 launch, opening local bureaus in more than two dozen cities and launching paid newsletters on technology, health care, and education. The pullback mirrors similar contractions at BuzzFeed News, CNN, and NPR this year.
Revenue Challenges
VandeHei said the company remains profitable but needs to “reset” costs after missing 2023 revenue targets. Digital advertising, which supplies the bulk of Axios’s income, has softened as brands shift budgets toward performance-based platforms such as TikTok and YouTube.
At the same time, AI-powered search summaries from Google and Microsoft reduce click-throughs to publisher sites, trimming ad impressions. Axios has experimented with licensing its content to AI firms, though executives say those deals remain small.
Staff Reaction
Newsroom leaders learned of the plan Tuesday night in a Zoom call. Several journalists tweeted shock, noting the company hired aggressively as recently as last spring. One producer posted that the video team “lost half its members overnight.”
Union representatives for Axios’s roughly 150 unionized workers said they would press for voluntary buyouts before involuntary cuts. The Writers Guild of America, East, which represents the newsroom, called the layoffs “deeply disappointing” and pledged to negotiate enhanced severance.
Company Outlook
Despite the reductions, Axios intends to keep launching local newsletters and will continue its subscription products, priced at $600 per year for professionals. The firm raised about $57 million from investors including NBCUniversal and Emerson Collective, most recently at a valuation above $400 million.
VandeHei told remaining staff the outlet will “double down” on exclusive journalism and reader revenue. Axios plans to release a redesigned mobile app early next year and is exploring paid tiers for its policy coverage.
Industry Context
More than 2,500 media jobs have been eliminated in 2023, according to industry tallies. Digital-native outlets once seen as immune to print-advertising declines are now grappling with the same macroeconomic forces. Venture funding for media startups has also dried up, leaving firms dependent on cash flow.
Axios’s cuts follow BuzzFeed’s shuttering of its news division, Vice Media’s bankruptcy filing, and repeated layoffs at Gannett, America’s largest newspaper chain. Analysts expect additional reductions industry-wide as companies chase profitability over growth.
Key Takeaways
- Axios is cutting 10% of its newsroom, about 50 roles, citing weak ad sales and AI-driven traffic loss
- Employees receive severance and healthcare through next year; union vows to negotiate more
- The company remains profitable but missed revenue goals, prompting a cost reset
- Media sector continues contraction with 2,500+ job losses in 2023
