On Tuesday, Axios announced that it would be laying off around 50 employees, which is approximately 10% of the company's 500-person workforce. In a message to staff, Axios CEO Jim VandeHei cited "changes in the media business" as the reason for the cuts, stating that the company needs to shift its investments to its core business areas to adapt.
VandeHei described the current climate as "the most difficult moment for media in our lifetime," pointing to factors like the fragmentation of reader attention, new competitors encroaching on Axios' business and talent, and the rise of AI models capable of summarizing news content. The layoffs will impact various parts of the organization, including the newsroom.
Axios was founded in 2017 by VandeHei, Mike Allen, and Roy Schwartz, all of whom previously worked at Politico. The company quickly gained recognition for its concise, bullet-point style of reporting. In 2022, Axios was acquired by Cox Enterprises in a deal valued at $525 million, with the three founders continuing to lead the company.
Moving forward, VandeHei said Axios will increase its focus on U.S. news coverage and accelerate the expansion of its city-specific newsletters to new locations. The company will also continue to develop its paid subscription product, Axios Pro, which is aimed at business professionals. Additionally, Axios is exploring potential acquisition opportunities.
Earlier this year, VandeHei told The New York Times that the rise of AI has influenced his thinking on how to position Axios, leading him to believe that the only media outlets that will survive this technological shift are those with strong journalistic expertise, trusted content, and in-person human connection. To that end, Axios plans to increase the number of live events it hosts and build paid memberships around some of its star journalists.
CNET, a pioneering online tech publication, is being acquired by Ziff Davis, a major digital media company that owns other tech-focused brands like Mashable, PC Mag, and Lifehacker. Ziff Davis is paying more than $100 million to purchase CNET from its current owner, Red Ventures.
Vivek Shah, the CEO of Ziff Davis, sees the CNET acquisition as part of the company's strategy to grow its portfolio of digital media businesses using its substantial cash reserves of around $800 million. He expects more consolidation in the industry as tech giants like Google and Meta capture an increasing share of digital advertising revenue, and as advancements in AI continue to disrupt the digital media landscape.
CNET, which attracted 38 million visitors in June 2024, has had multiple owners over the past three decades. It was previously acquired by CBS in 2008 for $1.8 billion, and more recently by Red Ventures in 2020 for around $500 million.
The CNET acquisition comes amid some recent challenges for the publication. In early 2023, an investigation found that CNET was publishing articles generated with the help of AI, prompting the company to refine its publishing guidelines. CNET's writers and other content creators later unionized, citing AI as a critical issue.
Ziff Davis's stock has also faced headwinds in the past year due to broader challenges in the publishing sector and the digital advertising business. However, Shah believes that acquisitions like the CNET deal will ultimately increase the company's profitability.
Shah sees CNET's well-established brand and sizable audience as valuable assets that will give Ziff Davis greater leverage with advertisers targeting tech consumers. CNET's product reviews and recommendations, which sometimes generate commissions, are also seen as an important editorial offering in an increasingly complex technology landscape.