DOWNWARD SPIRAL FOR CONDÉ NAST
COVID-19 CAUSES A FINANCIAL DOWNWARD SPIRAL FOR CONDÉ NAST
The effects of COVID-19 has destroyed the financial security of numerous companies in our nation. Over 22 million have lost jobs due to the pandemic and larger corporations can exceed lost as great as $700 million. Where does this leave smaller publications such as Vogue, Harper’s Bazaar, and Instyle? Have digital platforms finally taken over the future? The virus has not only spread into mainstream society but into the everyday reality of the financial sectors of publications. Due to social distancing rules publications are forced to halt photoshoots, lay off staff, and suspend or possibly cancel upcoming fashion projects. Which can result in over millions of dollars of lost income and revenue, cancelation of partnership, and halting of printed magazines. In 2017 Condé Nast reposted an annual loss of $120 million which resulted in a cut cost to three magazines.
If staff are continued to be laid off, previous employees have the option to start freelancing and using social media to generate revenue. This can result in a loss of talent who will look for a steadier income and may not return back to employment at the larger publications. COVID-19 has adjusted the financial belt for companies that were not ready for a future for what the future had to hold. Possible future predictions are publications will reinforce digital subscriptions, a live stream of fashion shows.