Getty Images is cutting 110 jobs, or 5 percent of its global work force, in its first major round of layoffs since 2007.
In an e-mail to his employees, Getty CEO
Jonathan Klein said the cuts are a reflection of changes in the imagery business. As it cuts costs, Getty is joining many other companies in suspending matching investments for employee 401k retirement plans.
Getty’s core stock photography business was already under attack from low-cost competitors when the economy worsened last year. The recession led to budget cuts at the media and advertising companies that make up Getty’s customer base.
The outlook for stock photography is so bleak that Klein took the step of reassuring employees that Getty is not going out of business.
“The viability of our company is not in doubt, provided we take the right and necessary decisions,” said Klein’s e-mail. Portions of the e-mail were published by the blogs
Thoughts of a Bohemian and
Photo Business News & Forum on Monday. Klein said the layoffs will largely affect sales staff, according to Thoughts of a Bohemian.
A Getty spokesperson said the layoffs are separate from the ongoing cutbacks at Jupiterimages, a former competitor that Getty acquired last month for $96 million.
“We are continuing to do everything we can to manage the business through these unprecedented times and are confident that we will emerge in a position of strength while staying true to our values and culture,” said spokesperson
Molly McWhinnie in an e-mail.
Getty Images, which was
acquired in 2008 by private equity firm Hellman & Friedman, issued no other public statement about the layoffs.
At the time of the sale to Hellman & Friedman, Getty’s largest business was creative stock photography (as opposed to microstock or editorial stock). A smaller division of Getty provides news, sports and entertainment services to editorial clients. Getty also owns iStockphoto.com, a microstock site that has emerged as a strong competitor to traditional creative stock photography.
Getty competitor Corbis
cut 30 jobs earlier this year and announced 175 job cuts in 2008.
A smaller stock photo agency, SuperStock, went bankrupt in December and was
acquired by a group of photographer-owned stock agencies in January.
Related stories
Feb. 27, 2009: Getty Will Cut Staff, Close Offices at Jupiterimages
August 1, 2007: Getty Cutting 100 Jobs; CEO Warns Of Decline In Traditional Stock Imagery
