Discover innovative ways to leverage the influence and enthusiasm of the sports community at Brand Play: The ADWEEK Sports Marketing Summit. Secure your spot now to participate in person in NYC or virtually on May 9.
Bustle Digital Group (BDG), a prominent digital media company, recently made significant changes within its editorial team at Fatherly. The company laid off seven editorial staff members and announced a reduction in editorial content moving forward, as confirmed by sources familiar with the situation.
This decision is part of a broader trend at BDG, which has undergone restructuring over the past couple of years, discontinuing titles like Gawker and Input, and implementing staff reductions at publications such as Mic. In a recent round of layoffs, BDG let go of nine full-time employees across Romper, Bustle, and Elite Daily, which had not been previously disclosed.
A spokesperson for BDG verified the information, while the Writers Guild of America, East, representing the BDG Union, did not provide a comment.
While Fatherly will not cease to exist, a company representative clarified that the brand will maintain a presence through newsletters and social media. However, it will no longer produce the same volume of content as before.
The downsizing at BDG reflects the broader challenges faced by the digital media industry, with declines in digital ad spending and evolving traffic patterns impacting companies like Vice, BuzzFeed Inc., and BDG. Despite generating revenue ranging from \(136 million to \)144 million last year, BDG experienced a decrease of 10% to 15% compared to 2022 when it earned $160 million. The company currently employs over 200 staff members, according to LinkedIn.
Challenges in Parenting Content
The restructuring at Fatherly marks the first instance of BDG phasing out a brand within its parenting portfolio, which includes Romper, Scary Mommy, and The Dad.
BDG acquired these properties, including Fatherly, in July 2021 from Some Spider Studios for $150 million in stock. This strategic move aimed to enhance BDG’s parenting offerings to cater to its millennial audience as they transitioned into parenthood, as explained by chief content officer Emma Rosenblum in an interview with ADWEEK.
The acquisition proved fruitful, with the four parenting titles collectively experiencing a 58% increase in parent readership within a year, accumulating a social media following of 41 million. Newsletter subscriptions across the portfolio also grew by 32% annually, contributing significantly to the company’s revenue.
Advertising Revenue Challenges
BDG heavily relies on advertising for revenue, with approximately 85% to 90% of its income originating from this source, making it vulnerable to market fluctuations.
The company’s advertising business is segmented into luxury and fashion, and consumer packaged goods (CPG) and parenting categories. While titles catering to luxury advertisers have performed well, those focused on parenting and CPG, such as Elite Daily, Scary Mommy, and Fatherly, faced challenges in 2023.
The competitive CPG landscape, coupled with the dominance of retail giants like Walmart and Amazon in advertising, has intensified the struggle for BDG. The departure of long-time chief revenue officer and president Jason Wagenheim at the end of 2023 further underscores the company’s efforts to navigate these challenges.