Gawker in turmoil again

Gawker Media creator Nick Denton sent an email announcing the layoff of 19 editorial employees (out of 133) and eliminating the traffic bonuses that whipped so many of his bloggers into posting frenzies. Gabriel Snyder, the L.A.-based writer for W and former Variety scribe, also will join Gawker as managing editor. From the email, posted at RadarOnline:

With the savings, we are increasing base pay and hiring 10 new people on the most commercially successful Gawker sites. But I know that's scant consolation for the colleagues we're losing and for those of you who have been enjoying the bonus windfalls from breakout stories. You can guess the reason for these brutal measures: the recession. Sure, the company is currently profitable and advertising sales are up by about 30% on their level of a year ago. Our biggest clients are consumer electronics and entertainment companies that are relatively well insulated. And, yes, this is not the first time I've predicted doom: in July 2006, when we "battened down the hatches" and closed down Sploid and Screenhead; and in April this year, when we spun off Idolator, Gridskipper and Wonkette.

But now the credit crisis is clearly going to affect every sector of the economy. Advertising buys typically plunge after the Christmas shopping season, and 2009 is obviously going to be exceptionally difficult. We have to prepare for the worst, now, rather than when the worst comes upon us.

Snyder became senior writer at W in early 2007.