Highsnobiety Layoffs: What Happened & Why?

On April 1, 2020, Highsnobiety laid off 51 employees, representing 25% of its workforce. The layoffs were a significant move for the company.

Headquartered in Berlin, Highsnobiety operates in the media industry. The layoffs reflect broader challenges faced by media companies during economic downturns and shifting market dynamics.

Why did Highsnobiety have Layoffs?

Highsnobiety decided to lay off 51 employees due to the economic impact of the coronavirus pandemic and the insufficiency of other cost-cutting measures. The company also faced challenges with brands and vendors halting shipments and production, making its commerce division unsustainable.

• Economic Impact of the Pandemic: The coronavirus pandemic severely affected revenue streams and overall business operations.
• Insufficient Cost-Cutting Measures: Previous efforts like voluntary salary cuts and tactical adjustments were not enough to navigate the crisis.
• Commerce Division Viability: Brands and vendors stopped shipments and production, rendering the commerce division unsustainable.

Company Statement

"Covid-19 is now beginning to hit us at our very core. And, for a business like ours, our core is our people," wrote founder David Fischer on LinkedIn, April 1. "Cutting costs, taking voluntary salary cuts, and making other tactical adjustments are not enough to get the company through this crisis."

Fischer's statement underscores the gravity of the situation faced by Highsnobiety. The pandemic's impact on the company's revenue streams and operational capabilities necessitated drastic measures. Despite efforts to mitigate the financial strain through voluntary salary cuts and other adjustments, the company found these steps insufficient to weather the crisis.

Impact on Workforce and Industry

The reduction of 51 employees at Highsnobiety has significantly impacted its workforce, particularly affecting departments like commerce and editorial. This downsizing has likely strained remaining staff, increasing workloads and potentially slowing down operations.

In the broader media industry, other companies have also announced layoffs. For instance, BuzzFeed and Vice Media have both recently reduced their workforce, reflecting a challenging environment for digital media companies.

Looking Ahead

The layoffs at Highsnobiety signal a period of restructuring and adaptation as the company navigates the post-pandemic landscape. This move indicates a strategic shift to ensure long-term sustainability.

• Focus on Core Competencies: Highsnobiety plans to concentrate on its strengths in content creation and digital media to drive growth.
• Streamlined Operations: The company aims to enhance efficiency by optimizing workflows and reducing operational redundancies.
• Exploring New Revenue Streams: Highsnobiety is looking into diversifying its income sources, including potential new partnerships and digital innovations.

Get Started with Sunset Today!

Sunset helps startups wind down by handling all legal, tax, and operational burdens, allowing founders to avoid penalties, reduce liabilities, and move on quickly. For personalized guidance and support, contact us to schedule a consultation or learn more. Don't wait—sign up today and try it out!