Axios Pro: Media Deals

January 05, 2023

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Good morning, Media Deals readers!

1 big thing: Tech industry cuts continue

Illustration of a cursor pushing out a worker holding a cardboard box with their possessions.

Illustration: Shoshana Gordon/Axios

As the tech industry convenes in Las Vegas to pitch and party, companies across the space have announced significant layoffs and other cuts this week.

Why it matters: These measures will have a broad impact in tech, particularly on the media side, and will further dampen ambitions for dealmaking, Kerry writes.

State of play: At least three companies reported cuts yesterday.

  • Salesforce, which has made about 80 acquisitions, including Slack, plans to cut 10% of its workforce, according to an SEC filing. That equates to about 8,000 employees. It's also reducing office space.
  • Vimeo, which went public in May 2021 and later that year bought Wirewax and Wibbitz, announced layoffs impacting 11% of its workforce, per Insider. It had already cut 6% of its staff in July.
  • Amazon, which has continued to invest heavily in media (most recently with its acquisition of MGM), plans to cut 18,000 jobs, CEO Andy Jassy wrote in a memo posted on its site. It's also been reorganizing its media teams.

Yes, but: Despite the market pressures, TMT executives aren't putting their heads in the sand. Head honchos in Las Vegas for the annual CES shindig are launching new strategies and pitching products.

  • For example, Roku, itself coming off a round of layoffs, unveiled its own line of TVs — a big bet for the streaming company given its past and continued reliance on partnerships with other TV makers.

Go deeper: What's happened so far at CES 2023

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