Brit + Co., an online content service targeted to women, announced it is reducing it’s staffing levels and fine-tuning it’s company structure to be less dependent on advertising. Tech website Re/Code reported the story Wednesday and the startup’s founder and CEO Brit Morin confirmed it in a Medium post.
“This is one of the hardest things to do as a founder,” wrote Morin. “and I have nothing but admiration for the people who have brought to life our mission of encouraging women to be creative and confident in pursuing their passions.”
Re/Code reported the decision was made after an acquisition that failed to materialize. There could be major cuts to the 50 member staff as a result.
Morin further stated that changes in the media world is forcing her company and other media companies to re-evaluate their business focus.
“With mass media consolidation, the evolving role of human brands and influencers, and new cross-platform revenue opportunities finally emerging, it is becoming clear that the old model no longer works,” wrote Morin. “The next model will see larger media conglomerates continuing to serve advertising and streaming services at scale, while smaller publishers may begin to look more like direct to consumer brands: brokering distribution deals with larger platforms; launching subscription services; and bolstering ad revenue with e-commerce, licensing deals and other consumer services.”
Already this year, several thousands have lost jobs at media companies like BuzzFeed, Huffington Post, Vice and other similar companies. The lack of advertising dollars flowing to these firms has forced them to downsize or change their business models to be less advertiser dependent.
The San Francisco based Brit + Co. launched 8 years ago. According to the website, the startup was created to be a “destination where real women could go to get inspired and educated on how to be creative.” It’s last funding round netted $15 million in May 2017. It has raised more than $42 million since its inception, according to Crunchbase.