The Gilded Age of Condé Nast Is Over
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Three weeks after McKinsey & Company slipped its foot into the door of the emerald tower, Condé Nast staffers continue to ask what fresh hell they find themselves in.
“I saw Graydon in the cafeteria this week!” said one business-side insider, last Friday. “In all my years here, I’ve never seen him in my life there. He was behind me in the line at checkout with his little swipe card. He was milling around uncomfortably with the commoners.”
When our source first walked into the Frank Gehry–designed cafeteria at 4 Times Square, Mr. Carter was studying the options available at the stir-fry station. It wasn’t clear whether he actually sat down to eat lunch, but the sight of him put our source into a bit of a panic.
“That whole feeling of working here and it being cushy and other people loving it and being jealous? That’s kind of gone now,” said the source.
We’re still eight weeks away from McKinsey actually handing out down recommendations for whatever painful cuts they devise to help boost the publisher’s bottom line. But it’s clear, from interviews with Condé Nast employees—from editors to executives to editorial staffers to ad sales slaves—that the enchanting, mystical era of Condé Nast is pretty much over. Small perks—the mani-pedis for clients, the flower deliveries, the sodas in the fridge—disappeared a while ago. Some changes, such as the emergence of Vanity Fair editor and restaurateur Graydon Carter eyeing reasonably priced stir fry, are worrisome on a psychological level. A culture of paranoia has taken over. What all these things add up to is a hefty emotional toll on staffers: Is this what they signed up for?
Of course, it’s a terrible time industrywide. But somehow, the necessary belt-tightening seems to have changed the look and feel of Condé Nast even more than that of other publishers.
Some within the company, however, argue that Condé Nast is just the same as everyone else, and is weathering the storm the same, too.
“The way to put it is: Should we be more worried than anyone else?” said Condé Nast CEO Chuck Townsend in an interview with The Observer. “How worried are you? Do you know what I mean? Here we are sitting in this rotten economy that in duration and in depth has exceeded anything any of us have experienced in our lifetime, bar none, and it produces a very worrisome situation. It’s universal. I don’t see how Condé Nast is different than anyone else.
“To a certain extent, all discretionary expenses in this business climate have to be managed much closer to the vest,” continued Mr. Townsend, referring to all the perks that separated Condé Nast from a place like Hearst. “All discretionary expenses. Right? Why? Because we have to make ends meet. We’re no different than anybody else. If we have less revenue, then we have less to spend.”
As the company prepares for a retrenchment of sorts, it appears The New Yorker will be immune from the pain that other editors and publishers in the building are anticipating.
In many ways, Mr. Townsend is right: Condé Nast, the elite standout of publishing houses of yore, doesn’t look much different than anyone else. The receptionists—other than on the 11th floor, a.k.a. the executive floor—have been fired, the newspaper subscriptions are gone. But that’s the point: Isn’t Condé Nast supposed to be different?
And there’s more to come. McKinsey has a long list of people to talk to. So far, consultants have made their way through about a fourth of the list, talking first to circulation and manufacturing directors, one insider said.
Over the next few weeks, editors and publishers will meet McKinsey consultants to face probing and uncomfortable questions about how they justify, say, paying $10 a word for a certain writer.
The Observer has learned, however, that New Yorker editor David Remnick will be exempt from meeting with McKinsey, as will anyone from the editorial side of his magazine. Two well-placed sources said that Condé Nast’s chairman, Si Newhouse, reached out to Mr. Remnick shortly after the McKinsey announcement was made and told him not to worry about anything—the magazine would be just fine, and neither McKinsey nor company executives would be mucking with his editorial costs. (Mr. Remnick declined to comment, and Mr. Townsend said, “When Si and David speak at the lunch they have periodically, God knows what’s communicated between them.”)
- More:
- Media |
- Anna Wintour |
- Chuck Townsend |
- Conde Nast |
- David Remnick |
- Graydon Carter |
- McKinsey & Company |
- The New Yorker |
- Vanity Fair |
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Conde Nast's troubles
"...there’s still film in the camera...” said New Yorker editor David Remnick. Film in the camera? The New Yorker is one of the most visually boring magazines ever. The photos and visuals really died when Tina Brown got the ax. There hasn't been film in their camera for the longest time.
I am a long time reader & subscriber, but truthfully it can be a real snooze. Two endless articles on traveling in Siberia???
I don't know why Remnick's comment irks me, but it does. His blind arrogance, I guess.
Put some film in the camera and actually take a few pictures once in awhile and publish them, I beg!!!!!!
SO true
Quite the snore. Unrealistic with the modern times we find ourselves.
Film in camera?
Is this metaphorical film or actual film film? If the New Yorker hasn't discovered digital photography yet, things at CN must be worse than everyone thought. Someone please welcome them gently into the 21st century!
Film in camera?
Is this metaphorical film or actual film film? If the New Yorker hasn't discovered digital photography yet, things at CN must be worse than everyone thought. Someone please welcome them gently into the 21st century!
let them eat cake
The bean counters cometh! Cry us a river, please. For all the THOUSANDS of journalists cast off by big media companies, let's have a moment of silence.
Four-star lunches, car service and massages? It's so NY.
Time Warner went through this exercise and cast off the lower rungs, leaving in place CEOs jetting home for the weekend and ruthless editors spending millions on photos and insane anniversary celebrations.
Let them eat cake!
Yum
EIC's, Pubs and CNP Execs have always taken lunches with Mr Newhouse in the cafeteria.
Mr. Newhouse?
Must be his secretary weighing in...
will this make them less nasty?
Curious to see whether some of the loss of perks will make the Conde Nastes less convinced that they're a superior brand of people whome everyone envies.....not sure of those free mani-pedis had something to do with that. Maybe the mags will be less gloss and celebrity chasing, more susbtance. Hopeful, but doubtful.
Less cush at Conde Naste
I've always said that in media there are basically two kinds of people: those who are in it for bragging rights, and those who are in it for the product. Publishing has always been rife with snobs. While they congratulate themselves on their pedicures, other people are creating culture. Withal, they're still employed, yes? Outside the NYC publishing and media hothouse, that's still considered a big deal -- even without spa privileges.
Oh, Itty Poo!
"We have to start drinking tap water;" "[Nobu is] so outrageously expensive, now you have to think twice;" "I really think twice about using a car now;" "Going out to lunch, even among two executives, and we’re worried about expensing it because of the meaning it might take."
So I'm trying to figure out how to pay the mortgage and get dental care for my family, and these folks are whinging about having to *think twice* about getting expensive sushi for lunch or getting driven around by a limo? Are they for real?
It amazes all of us to see how deeply "in the bubble" inside-the-beltway people in Washington can get, but this is truly incredible. Oh, poor Conde Nast people, having to drink tap water and having to "think twice" about outrageous expenses! I feel so *badly* for you all!
Welcome to the world, you pampered cretins.
Good Lord
"We have to start drinking tap water;" Nobu is "so outrageously expensive, now you have to think twice;" "I really think twice about using a car now;" "Going out to lunch, even among two executives, and we’re worried about expensing it because of the meaning it might take."
So I'm trying to figure out how to pay the mortgage and get dental care for my family, and these folks are whinging about having to "think twice" about getting expensive sushi for lunch or getting driven around by a limo? Are they for real?
It amazes all of us to see how deeply "in the bubble" inside-the-beltway people in Washington can get, but this is truly incredible. Oh, poor Conde Nast people, having to drink tap water and having to "think twice" about outrageous expenses! I feel so badly for you all!
Welcome to the world, you pampered cretins.
Don't cry for Conde
Boo freaking hoo! A slightly less expensive lunch that is still paid for by your boss? No more unnecessary bottled water? Good God, get over yourselves and suck it up, just like everyone else in the industry has. Be thankful you have a job and get back to work and quit your whining.
Too many words!
"Quite the snore. Unrealistic with the modern times we find ourselves."
Hard to tell exactly what you mean by that semi-literate construct, but I assume you're one of the "800 words at a time is all my canary brain can hold" generation.
Oh, wait. Is 800 words more than 140 characters?
Too many words!
"Quite the snore. Unrealistic with the modern times we find ourselves."
Hard to tell exactly what you mean by that semi-literate construct, but I assume you're one of the "800 words at a time is all my canary brain can hold" generation.
Oh, wait. Is 800 words more than 140 characters?
back to earth
no wonder graydon has given up blaming bush for everything!
My Heart Is NOT Bleeding!
As a marketing person/advertiser with some of these publications I'm appalled. A story of utter waste. Yes, I know, some of us "clients" indulged with them over the years. But shame on those people, too. We, who are YOUR clients, don't typically live this well because we're accountable to our companies and shareholders.
I once worked at a global agency. One of top our execs put on a lavish internal, catered lunch and billed part of it to my client. Unforgiveable enough as it was. But I'll never forget the gentle reminder call I got from my client after he rejected the invoice: "Our agency shouldn't be eating better than we do."
Holding perks close to the vest, eh?
Just reading a weird comment of mixed metaphors like “To a certain extent, all discretionary expenses in this business climate have to be managed much closer to the vest,” from Conde Nast CEO Townsend, gives me the chills. Quick, hide the perks! McKinsey and Co. is coming down the hall!
Holding perks close to the vest, eh?
Just reading a weird comment of mixed metaphors like “To a certain extent, all discretionary expenses in this business climate have to be managed much closer to the vest,” from Conde Nast CEO Townsend, gives me the chills. Quick, hide the perks! McKinsey and Co. is coming down the hall!
Holding perks close to the vest, eh?
Just reading a weird comment of mixed metaphors like “To a certain extent, all discretionary expenses in this business climate have to be managed much closer to the vest,” from Conde Nast CEO Townsend, gives me the chills. Quick, hide the perks! McKinsey and Co. is coming down the hall!
Holding perks close to the vest, eh?
Just reading a weird comment of mixed metaphors like “To a certain extent, all discretionary expenses in this business climate have to be managed much closer to the vest,” from Conde Nast CEO Townsend, gives me the chills. Quick, hide the perks! McKinsey and Co. is coming down the hall!
too late
What's unclear to me is why this was ever tolerated. Either way I'm not sure it matters. The film metaphor is perfectly apt for this dying business.