Despite the positive stirrings the past few days in the stock market, the economy is looking as bad as ever, so Cond Nast CEO Charles Townsend said that despite the magazine closings and layoffs since last fall, more cuts were coming. AdAge has Townsend's staff memo, which mixes some cheerleadingcirc stats are "strong" and the publisher is making "critical" ad revenue market share gainswith a heavy dose of caution and concern. Alluding to recent across the board staff cuts back in November and the shuttering home shelter mag Domino in January, Townsend said that the company will have to find additional ways to rein in costs until the economy turns around.
Since the company brought its digital and print ad sales operations closer together in January with the formation of Cond Nast Digital, the online side will surely be affected by any further cuts. What is unclear is how deeply the online side will be sliced into.
By David Kaplan