Univision plans to lay off about 6 percent of its workforce, or 250 people, TheWrap has confirmed. Fifteen of the job cuts will be at the millennial-targeting Fusion.
The restructuring comes on the heels of a tough fiscal third quarter. Univision suffered a net loss of $30.5 million over the recent three-month period on total revenues of $735 million, which represents a loss of 8 percent.
“We operate in a fast changing and dynamic industry and we regularly make adjustments to ensure we are nimble and best positioned to continue investing in Univision’s growth,” a rep for the company told TheWrap in a statement. “As part of a broader effort to streamline operations, we eliminated a number of positions in various areas of the company. Over the next several months, we will be adding new positions to support strategic growth areas that will allow us to be better poised to serve our diverse audiences across platforms and meet the needs of our partners.”
Here’s an email Fusion sent out internally, which was obtained by TheWrap:
Earlier today we were informed by Univision of its decision to reorganize how it creates and distributes content, including on its digital platforms. We are pained to hear that 15 of our colleagues at Fusion will be laid off as part of the 250 layoffs company-wide. The reorganization will also apparently combine employees at Gizmodo Media Group, Fusion.net, and The Root. Management’s position is that it is legally appropriate to cover all of these Guild-represented employees under the terms of the collective bargaining agreement that currently covers the editorial employees at Gizmodo Media Group. Union staff are gathering and analyzing all of the relevant details — including the operational changes, the individual layoff decisions, and the company’s analysis of the expansion of employees covered by the current union contract.
Although there will not be layoffs at Gizmodo or The Root, 15 union-represented employees at Fusion.net are slated to be laid off. They will receive the union-negotiated severance (two weeks per year of service, including extended health benefits, with a minimum of eight weeks’ pay and benefits).
We are pained by the loss of so many colleagues shortly before the holiday season. We encourage everyone in the Guild-represented units to communicate with one another and with us — particularly the folks whose work lives are being upended by layoffs and transfers. You can reply directly to this email with questions and concerns.
Lowell Peterson, Executive Director
Jeff Schioppa, Business Agent
Megan McRobert, Organizer
Recently, Fusion employees moved to unionize with the Writers Guild East. The Root was being courted by the same organization.
Last summer, Univision purchased Gawker for $135 million — a surprising acquisition, for sure. Gawker was forced to file for bankruptcy after losing a legal battle over its release of a Hulk Hogan sex tape.
Univision is privately held. It’s chaired by billionaire businessman Haim Saban.
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