American Media, owner of the National Enquirer and Shape, eliminated 15 people in its digital operations yesterday.
Joe Bilman, the recently hired chief digital officer, said the company is planning to make a multi-million-dollar digital investment. “As part of the restructuring, there were some layoffs,” he said.
“There are dramatic traffic goals for digital,” he said. “We have to have the right people in line to achieve those goals.”
The company, which saw its credit ratings get a significant downgrade recently, has an earlier Chapter 11 bankruptcy on its books — which made it tough to find the cash to invest in digital media.
Only about 2 percent of AMI revenue is coming from digital, compared to some larger magazine media companies, which have pushed digital revenue to the 10 percent range.
Despite its ongoing cash crunch, Bilman said the company plans to invest $30 million in digital over the next three years.