Facebook and Google Face Heat on Media Layoffs, Reports The Hill
Critics are targeting Facebook and Google after a week of high-profile layoffs in the media industry, pointing to their dominance over internet ads as the reason news outlets are struggling, reports The Hill, referring to the news that BuzzFeed would be cutting 15 percent of its staff, including 43 journalists in its news division; HuffPost’s parent company Verizon said it’s planning to lay off 7 percent of its media division, which also includes Yahoo News; and Gannett, the local newspaper holding company that publishes USA Today, began another round of cuts to its regional outlets. In all, about 1,000 media jobs were cut.
According to The Hill:”Some are laying the blame with owners and hedge funds, but many are pointing to Facebook’s and Google’s power over the market for online ad revenue as the reason news outlets are struggling to establish a stable business model.
“The two companies take in the majority of internet advertising revenue in the U.S. and critics say that the current state of affairs leaves little for newspapers hurt after years of declining print revenue.”
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