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| Pay Cuts Come to Condé Nast, the Glossy Publisher of Vogue and Vanity Fair | Pay Cuts Come to Condé Nast, the Glossy Publisher of Vogue and Vanity Fair |
| (2 days later) | |
| Condé Nast, the most glittering of all magazine publishers, is the latest media casualty of the coronavirus pandemic. | Condé Nast, the most glittering of all magazine publishers, is the latest media casualty of the coronavirus pandemic. |
| Roger J. Lynch, the chief executive of the company behind Vogue, Vanity Fair and The New Yorker, sent a memo on Monday to 6,000 employees around the world to inform them of an austerity plan that includes pay cuts, furloughs and possible layoffs. | Roger J. Lynch, the chief executive of the company behind Vogue, Vanity Fair and The New Yorker, sent a memo on Monday to 6,000 employees around the world to inform them of an austerity plan that includes pay cuts, furloughs and possible layoffs. |
| “It’s very likely our advertising clients, consumers and therefore our company will be operating under significant financial pressure for some time,” Mr. Lynch said in the note. “As a result, we’ll need to go beyond the initial cost-savings measures we put in place to protect our business for the long term.” | “It’s very likely our advertising clients, consumers and therefore our company will be operating under significant financial pressure for some time,” Mr. Lynch said in the note. “As a result, we’ll need to go beyond the initial cost-savings measures we put in place to protect our business for the long term.” |
| The salaries of those earning $100,000 or more — just under half the company — will be reduced by 10 to 20 percent for five months, starting in May, the memo said. The pay of executives in the senior management team, including Anna Wintour, the artistic director and Condé Nast’s best-known figurehead, will be cut 20 percent. | The salaries of those earning $100,000 or more — just under half the company — will be reduced by 10 to 20 percent for five months, starting in May, the memo said. The pay of executives in the senior management team, including Anna Wintour, the artistic director and Condé Nast’s best-known figurehead, will be cut 20 percent. |
| In addition, Mr. Lynch said that he would forgo half of his salary, and that board members who were not employees of Advance Publications (the holding company that owns Condé Nast), like Domenico De Sole, former chief executive of Gucci Group, would take a 50 percent reduction in their compensation. | In addition, Mr. Lynch said that he would forgo half of his salary, and that board members who were not employees of Advance Publications (the holding company that owns Condé Nast), like Domenico De Sole, former chief executive of Gucci Group, would take a 50 percent reduction in their compensation. |
| Mr. Lynch did not specify how many layoffs were under consideration. | Mr. Lynch did not specify how many layoffs were under consideration. |
| “While we consider it a last option, we do expect there will be some role eliminations as part of these efforts,” he said in the memo. | “While we consider it a last option, we do expect there will be some role eliminations as part of these efforts,” he said in the memo. |
| Those decisions are expected next month. In the meantime, the company has frozen hiring on hundreds of open positions. | Those decisions are expected next month. In the meantime, the company has frozen hiring on hundreds of open positions. |
| The company plans to start three- or four-day workweeks for some employees in markets such as Britain and the European Union, “in particular where government programs and stimulus packages can help supplement employees’ earnings,” Mr. Lynch wrote in the memo. | The company plans to start three- or four-day workweeks for some employees in markets such as Britain and the European Union, “in particular where government programs and stimulus packages can help supplement employees’ earnings,” Mr. Lynch wrote in the memo. |
| Condé Nast is not directly asking for government money, but is instead exploring the use of relief programs and stimulus packages in certain regions for furloughed or laid-off employees. The company plans to take advantage of the “partial activity” assistance programs in those parts of the world to make up for the lost salary of furloughed employees or those whose hours have been cut. | Condé Nast is not directly asking for government money, but is instead exploring the use of relief programs and stimulus packages in certain regions for furloughed or laid-off employees. The company plans to take advantage of the “partial activity” assistance programs in those parts of the world to make up for the lost salary of furloughed employees or those whose hours have been cut. |
| In 2019, Condé Nast united its American and international arms into a single entity. The company has operations in France, Italy, Germany and Spain, as well as in Asia, with half its employees based in the United States. | In 2019, Condé Nast united its American and international arms into a single entity. The company has operations in France, Italy, Germany and Spain, as well as in Asia, with half its employees based in the United States. |
| Condé Nast would be one of the first major publishers to take advantage of government programs set up to make funds available to people whose jobs have been affected by the pandemic. Those programs were designed to help companies avoid layoffs, and some of the programs require the employer to request funds. Requesting government assistance would be an unusual move for a company whose high-paid editors have enjoyed perks such as town cars and clothing allowances. It could also risk alienating readers, for whom the idea of a glossy magazine publisher requesting funds for certain employees may be anathema. | Condé Nast would be one of the first major publishers to take advantage of government programs set up to make funds available to people whose jobs have been affected by the pandemic. Those programs were designed to help companies avoid layoffs, and some of the programs require the employer to request funds. Requesting government assistance would be an unusual move for a company whose high-paid editors have enjoyed perks such as town cars and clothing allowances. It could also risk alienating readers, for whom the idea of a glossy magazine publisher requesting funds for certain employees may be anathema. |
| Recently, two of Condé Nast’s most prominent clients, the luxury groups LVMH Moët Hennessy Louis Vuitton and Kering, told furloughed employees that they would be part of the “partial activity” government programs in France. Both companies backpedaled after peers such as Chanel announced that they would bear the costs themselves, rather than tap into the public purse. | Recently, two of Condé Nast’s most prominent clients, the luxury groups LVMH Moët Hennessy Louis Vuitton and Kering, told furloughed employees that they would be part of the “partial activity” government programs in France. Both companies backpedaled after peers such as Chanel announced that they would bear the costs themselves, rather than tap into the public purse. |
| Magazines were on rocky ground before the coronavirus started spreading across the globe, and the industry is now in free fall. Luxury companies, who provide the ads that are the lifeblood of fashion and lifestyle publications, have cut or frozen their marketing budgets. At a time when more than 16 million Americans are newly out of work, people are turning away from fantasy purchases and saving up for necessities. | Magazines were on rocky ground before the coronavirus started spreading across the globe, and the industry is now in free fall. Luxury companies, who provide the ads that are the lifeblood of fashion and lifestyle publications, have cut or frozen their marketing budgets. At a time when more than 16 million Americans are newly out of work, people are turning away from fantasy purchases and saving up for necessities. |
| Updated June 5, 2020 | |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| Condé Nast had already been re-evaluating its media strategy, refashioning itself to cater to an online audience attuned to Instagram and TikTok. It has sold off certain titles and turned once-mighty glossies like Glamour into digital-only enterprises. After the subscription success of The New Yorker, paywalls went up around Vanity Fair and Wired. Vogue has started to embrace digital publishing, though it is still highly dependent on advertising revenue. | Condé Nast had already been re-evaluating its media strategy, refashioning itself to cater to an online audience attuned to Instagram and TikTok. It has sold off certain titles and turned once-mighty glossies like Glamour into digital-only enterprises. After the subscription success of The New Yorker, paywalls went up around Vanity Fair and Wired. Vogue has started to embrace digital publishing, though it is still highly dependent on advertising revenue. |
| As a result, and after several years of losses, the company was on a pace to turn a profit this year. The pandemic has altered that trajectory, as it has for other publishers. | As a result, and after several years of losses, the company was on a pace to turn a profit this year. The pandemic has altered that trajectory, as it has for other publishers. |
| “We aren’t alone in needing to take actions like this,” Mr. Lynch said in the memo. “Companies around the world are all facing similar challenges and responding accordingly. But that doesn’t make this process any easier.” | “We aren’t alone in needing to take actions like this,” Mr. Lynch said in the memo. “Companies around the world are all facing similar challenges and responding accordingly. But that doesn’t make this process any easier.” |