By: Staff reports Media Columnist Among Victims
(The Hollywood Reporter) Online magazine Salon.com, one of the best-known news and
commentary content sites, fired 13 of its nearly 150 workers in New York, Seattle,
and San Francisco, and shut its Seattle office Wednesday in the latest bad news to
strike dot coms.
The New York staff was told of the layoffs without warning in a meeting called by
founder, chairman, and editor in chief David Talbot.
It is unknown whether this development will affect the branded television program
scheduled to begin this year on Bravo, the unsuccessful Salon Radio, or the company's
plans for its recently acquired subsidiary MP3Lit.com. The television deal was an
equity arrangement with Rainbow Media Holdings, Bravo's parent company. Salon exchanged
10% of the company for advertising valued at $11.8 million, with Salon to retain the
rights.
'In a move to reduce costs while continuing to grow revenues, Salon.com has cut its
operating budget for fiscal 2001 by approximately 20%,' Salon.com President and CEO
Michael O'Donnell said in a statement. Media columnist Sean Elder and freelance film
critic Charles Taylor are among the staff losses.
Salon director of public relations Dayna Macy confirmed that most of the layoffs are
from the advertising and sales departments. Inside sources expect that numerous
contracts with contributors will not be renewed.
Salon's pink slips follow layoffs at CBS Internet and APBNews.com, which will shut
down entirely in a few days if new funding isn't secured.
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