To counter the plunge in advertising that is plaguing the industry, the publisher of Vogue, Vanity Fair, GQ and Glamour told staffers Monday that it is cutting salaries of those making more than $100,000 by between 10 percent and 20 percent, effective May 1. The reductions will be in place for five months across all markets.
Chief executive officer Roger Lynch will take a 50 percent reduction in his base salary, as will the external members of its board. The rest of the executive leadership team which includes Vogue editor in chief and Condé Nast artistic director Anna Wintour, who is one of the publishing companies highest-paid executives will reduce their base salaries by 20 percent.
“While we aren’t as solely dependent on print and digital display advertising as some of our competitors, globally, we will still see a substantial impact from this crisis on our business,” Lynch said in a staff memo. “It’s very likely our advertising clients, consumers and, therefore, our company will be operating under significant financial pressure for some time. As a result, we’ll need to go beyond the initial cost-saving measures we put in place to protect our business for the long term.”
The media company will also implement reduced working hours and work week schedules such as three- to four-day work weeks for certain roles, “in particular where government programs and stimulus packages can help supplement employees’ earnings.”