State intervention and government prop-ups have led some media companies to approach job cuts by stage. The initial cuts were often less than the declines in ad revenue these companies faced. In the U.S., the overall unemployment rate surprisingly fell in May, thanks in large part to government loans to employers as well as hiring of part-time workers for essential services.
But as that money runs out, and fears of a second coronavirus spike in the fall bubble up, media companies look set to face hard choices, particularly as the downturn in ad revenue moves from a second-quarter issue to a full year slide. Few CROs see a “V-shaped recovery” for ads this year.Read More