January 05, 2023
Good morning, Media Deals readers!
1 big thing: Tech industry cuts continue
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