CEO Randy Falco, who announced
plans to retire by year’s end, has signaled more
upheaval and layoffs are in the media company’s future.
part of our continuing efforts, we have made the very difficult decision
to reduce personnel across the company,” Falco wrote in a memo to
staff obtained by TheWrap. “We know that disruption is required to
transform this business into a company that will not only exist but
continue to thrive in the future.”
lays off nearly 100 workers
recent weeks, the company has lost CFO Francisco Lopez-Balboa
and Gizmodo Media Group CEO Raju Narisetti.
changes needed are not going to be easy,” he continued in the memo, sent
last week. “Our multi-year transformation process includes a rigorous
evaluation of operational costs, core business processes and
organizational structure to accelerate [Univision’s] evolution toward a
simplified, more agile, digitally enabled company.”
Slayer Peter Thiel Agrees to Drop Bid for Bankrupt Site - and Its
for Univision declined to comment for this story.
this month, Univision put the kibosh on a long-awaited IPO and laid off more
than 150 employees across both the
Spanish-language TV network and Gizmodo Media Group it acquired last
year. And in March the company laid
off 20 employees as it announced plans to
restructure the business amid a steady erosion in ratings on the
part of Univision’s wholesale company evaluation, an audit of
efficiencies is being conducted by Boston Consulting Group.
businesses that have laid off the most employees so far this year
hope the review will position the to succeed in an era that rewards
digital success and fervently loyal, but exceedingly fragmented TV
audiences for both Univision and Fusion, an English-language joint
venture that it has wholly owned since 2016.
Names Jessica Rodríguez President and COO of UCI Networks
many of its legacy media cohorts, Univision has come face-to-face with
an evolving, more digitally-focused landscape, forcing the company to
make tough decisions in reevaluating how to position itself to survive
there’s plenty of uncertainty among rank-and-file employees as to what
the company will actually look like, and whose jobs could be on the
impression has been that Univision is not handling this situation well
and people are freaked out,” an editor at Gizmodo Media Group, who
declined to be named, told TheWrap. “But as of yet there have not been
any cuts to rank-and-file GMG editorial staff. In fact, there doesn’t
appear to be a hiring freeze.”
the stark differences in Univision’s TV and digital properties, the
company reported that core advertising revenue for TV was down 18.4
percent in the most-recent fourth quarter, while digital core
advertising revenue was up 2.8 percent.
Univision Awards Show 'Premio Lo Nuestro' Runs Runner-Up to NBC's
ratings on the main network have plummeted in recent years, with
longtime rival Telemundo surpassing the once-dominant Univision in the
key 18-49-year-old demographic.
the 2010-11 TV season, Univision averaged 2.2 million viewers in the key
demo, while Telemundo managed just 709,000. In the most recent
2016-17 TV season, Univision averaged just 843,000 viewers from Monday
to Friday in the same 18-49 demo. Telemundo finished with 861,000 per
a whopping 62 percent decline for Univision since 2010, with the network
consistently falling since 2012-13.
the drop in ratings and the shuffling happening inside the company,
Univision has continued to perform financially. Revenue at Univision
declined less than 1 percent in 2017 to $3.02 billion from $3.04
billion in 2016.
the new digital division is emerging as a bright spot, as well as a
platform to reach a more diverse group of young consumers — a necessity
as its traditional Spanish-speaking audience has evolved.
but one of Gizmodo’s sites recently experienced double-digit growth in
visitors month-to-month. The only outlier, Lifehacker, missed the mark
only because it had just experienced back-to-back months of all-time
losing sight of our core mission to inform, empower and entertain our
audiences, we know that disruption is required to transform this
business into a company that will not only exist but continue to thrive
in the future,” Falco wrote in his staff memo.
Maglio and Jon Levine contributed to this reporting.