Essence Lays Off Their Digital Team

First IAC-funded RushmoreDrive.com folded. Then, Ebony Magazine revealed that they are shopping for a buyer. Now Essence Magazine has laid off their entire digital team.

According to Journalistics.com and Black Web 2.0, Essence (which is owned by Time Inc), recently re-launched their web site, and then announced that they would be laying off their web team (12-15 people) - citing budgetary reasons.

Essence is also letting go of some magazine staffers, with the exception of the managing editor, the deputy editor, and the photo editor.

In a time of economic difficulty, it's quite normal to hear that companies are folding or downsizing. Black media companies, like any media companies, are very dependent on ad sales for their revenue. Unfortunately, advertising budgets are always slashed by big companies during a recession.

Even companies like Black Enterprise, BET, and TV One are being affected.

The lesson to learn is to prepare for financial downturns even when times are good, and always minimize your overhead in advance. Don't wait until things get bad before you start implementing cost-saving changes.

For every peak, there's a valley ahead - and vice versa.