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CORBIS LAYS OFF 160 ABANDONS ASSIGNMENT DIVISION- SOURCE PDNONLINE -

Corbis Lays Off 160, Abandons Assignment Division

June 28, 2007

By Daryl Lang

Fifteen percent of Corbis employees are losing their jobs in cuts orchestrated by incoming CEO Gary Shenk, who starts his new job Monday.

On Thursday Corbis said it was letting go 160 employees in 17 offices worldwide. The lost jobs span many departments and include positions as high as vice president.

Corbis is also getting out of two businesses in which it had struggled: assignment photography and digital asset management, a service aimed at managing corporate media libraries.

“We’re saying goodbye to a lot of great people today who made great contributions to Corbis,” Shenk said in an interview Thursday. “We’re trying to be as fair and supportive as possible with them given the difficult process they’re going through.”

Shenk said the cuts were the result of an organizational review he initiated in April, around the time he was picked to succeed outgoing CEO Steve Davis. The cuts are designed to make the Bill Gates-owned photo agency profitable for the first time. Shenk says Corbis is meeting its financial targets for 2007 and the layoffs are not related to 2007 performance.

“It’s a very difficult day for Corbis, but on a different level it’s a very exciting day. We believe having done this very strategically, and thinking, ‘How do we do basically more with less?,’ today we don’t believe in any way we’ve sacrificed our ability to generate revenue, and we’ve cut out 15 percent of our headcount,” Shenk said.

“Most of our employees understand that Corbis needs to make a decisive step toward profitability,” Shenk continued.

As word of the layoffs spread Thursday, Corbis employees said they were surprised by the number of people let go. “During the day everybody was waiting for the hammer to drop,” said one Corbis staffer. “Nobody knew if it was going to happen to them.”

Corbis is planning to sell its digital asset management group, which employs about a dozen people, though the company says it is not ready to announce a deal. Corbis will continue to operate the sales and customer service elements of the asset management business.

Corbis once tried to make its assignment division a player in commercial assignment photography, but it had a hard time retaining talent, losing head agent Thea Vaughan earlier this year and star photographers Dimitri Daniloff and Michelle Asselin last year. The company says it will complete all representation projects that are currently under contract.

The number of people working for Corbis is now between 900 and 950. Corbis said its 2006 revenues were about $251 million.

Corbis’s top competitor, Getty Images, employed 1,750 people at the end of 2006 with annual revenues of $800 million.

Getty also has undertaken layoffs in recent months, though in smaller numbers. Both of the large photo agencies grew by acquiring smaller companies, which at times has saddled them with redundancies in support staff and technology.

No changes to the Corbis executive team are planned as part of this week’s layoffs, Shenk said.

Throughout its history, Corbis has reorganized and restructured every few years as it tries to turn a profit.

by Alessandra Benedetti at Fri Jun 29 19:17:18 UTC 2007 (ed. Mar 12 2008) Rome, Italy | Bookmark this | Digg this |

Dropping the assignment division…might this be good for us? I’m not sure what all this means. Any thoughts?

by Paul Treacy | 29 Jun 2007 19:06 (ed. Jun 29 2007) | Home in New York City, United States |
Don’t think so Paul, many LS were working with Corbis.

by Andy Levin | 29 Jun 2007 20:06 | The Dirty South, United States |
Sure, but I know that there was much discontent within the ranks with many leaving prior to this announcement.

by Paul Treacy | 29 Jun 2007 21:06 | Home in New York City, United States |
Related: http://www.lightstalkers.org/another_kick_in_the_groin_for_the_industry

by md | 29 Jun 2007 22:06 | Minneapolis, United States |
Perhaps this is where they are headed? ...... http://www.snapvillage.com/

“And if you are a photographer we also want your images” !!!!!!

by Tony Stringer | 29 Jun 2007 23:06 | Vicenza,, Italy |
Tony, Stringer is a term of the past indeed.

by md | 29 Jun 2007 23:06 (ed. Jun 29 2007) | Minneapolis, United States |
For anyone who has been associated with Corbis for the last few years, you’ll know that they “unofficially” stopped representing photographers for assignments a long long time ago; though they continue to recommend shooters if any of their clients need advice. This move is apparently to focus more on pushing stock images to clients. So, if you are a photographer who gets plenty of assignments on your own and Corbis manages a ton of your stock it could actually be a good move for you.

After saying that, however, it’s never good news when so many people get laid off, but it seems that OUR industry, Getty and Corbis and all us shooters out there, are in for a rough couple years. To quote Philip Jones Griffiths, “I believe that we can’t ignore a simple, simple fact, and that is that the world is being dumbed down.” Watch out for more MicroStock sites!

Ryan

by Ryan Pyle | 30 Jun 2007 01:06 | Shanghai, China |
Phillip Jones Griffiths’s quote is correct…up to a point. The world isn’t being dumbed down. What’s happening is the mainstream media is being dumbed down. So its increasingly a mystery why so many photographers still have ambitions to work in it, because:

1/ It’s simply not interested in covering the issues these photographers profess to be interested in.

2/ It’s for the most part simply not interested in paying any significant sums for photojournalistic imagery.

3/ The audience is now hugely fragmented, but one thing is certain – most of the overall audience for news and journalism is increasingly abandoning mainstream media sources in favour of online options.

The SnapVillage thing and other ‘microstock’ houses are simply a symptom of a wider truth – that there are now a massive, overwhelming amount of images available. It’s supply and demand – if the supply increases, the price drops. Profit is made by having massive amounts of cheap images searchable under one portal.

This is a reality and cannot simply be wished away. The traditional photojournalistic paradigm is dead, and Corbis – being a business – is reacting to that.

What’s the point of having an Assignment Division, if the customers who traditionally provided the assignments no longer pay, or want the material?

I don’t like it anymore than anyone else, but its about time photographers woke up and stopped pursuing a target which no longer exists, and won’t profit you much even if it did. Magazine dayrates have hardly changed in over a decade, and they ain’t going up anytime soon.

All the signs have been pointing to this for ages, yet we’re stubbornly clinging to something thats gone, and trying to sustain a model which is no longer relevant in large part.

There was a thread on LS recently concerning magazines like Foto 8 and Private soliciting work for no payment. The counter-argument is that such magazines are the last bastion of quality long-form photojournalism.

But what struck me after reading the thread was that these magazines actually seem to work in a very similar way to Web 2.0 crowdsourcing companies. They’re a pole of attraction around which photographic content (not stock in this case but photo-essays) revolves, but they essentially provide little or no economic benefit to the creator.

They do of course benefit the brand value of the magazine, in the same way that iStockphoto becomes a brand – by simply showcasing work which builds its brand kudos across time, but doesn’t benefit the individual photographers in a major way.

These magazines are content aggregators and gatekeepers. One could even argue they’re worse gatekeepers than the traditional magazines. Traditional magazines chose what they were going to publish, and obviously rejected a lot of other stuff for all kinds of sensible or arbitrary reasons. But the chosen ones got paid.

Now, in what’s supposed to be a showcase for the best of our craft (mostly because other comparable showcases no longer exist), the photographer isn’t being paid, or is paid a small amount.

There really is little difference in the economic model of these magazines to other crowdsourcing trends, because they’re essentially a reaction to the reality of the photographic marketplace overall. The economic reality in photojournalism mirrors the reality of stock photography.

In stock photography you have now a huge number of people quite happy to give their images away or sell them for a pittance just for a photo-credit. The supply increases, the price falls. Its exactly the same in photojournalism.

Admit it.

So it’s a rich seam to be mined by content aggregators because that’s a workable business model to exploit that reality.

Of course it doesn’t work economically for the photographer…but as long as there are enough of you numpties out there willing to work for a photo-credit pat on the back and live off dog food (or are independently wealthy), those businesses will thrive.

The only thing which is going to sustain photojournalists is for them to start pursuing any and all other independent economic models in the online space. It’s the only place where you can (with effort obviously…want an easy life? Go work in a bank) find an audience which isn’t dumbed down, because the internet is where people SEEK OUT information, not where it’s spoonfed to them.

It’s also about the only place which is going to provide an economic backbone for photojournalism in future, simply because thats where increasing amounts of advertising money is going – away from print, to online. This is why so many newspapers and magazines are cutting budgets.

They have no advertising money to spend on sending you to Kaboomistan ‘to find yourself’ for 6 months anymore.

Get over it.

How is photojournalism going to be sustained in future? I have absolutely no idea.

What is obvious though is that any sustaining business model is going to have to start coming from US, and not the newspaper, magazine, stock library, agency, or any other gatekeeper crutch we might have relied upon in the past, because that whole infrastructure is being thrown up in the air…but for a bunch of people who are supposed to be in the business of seizing ‘the decisive moment’, we sure seem to be pretty bovine getting our shit together and adapting.

The situation we find ourselves in, is symptomatic of how far away most of us are from even grasping what’s going on, never mind doing anything about it.

by Sion Touhig | 30 Jun 2007 10:06 | London, United Kingdom |
Sion,

I don’t know how is it for you but the words I hear most often is “Oh – we will just use a news –wire photo/s”

When AP, Reuters and Getty provide images for free (after initial subscription) to thousands of happy clinets – there is not much demand left for anything else.

by Eyal Dor Ofer | 30 Jun 2007 11:06 | Israel, Israel |
The words you hear are coming from existing traditional media sources. That was my point. If those sources keep telling us they’re going to use wire service images, then why are we continuing to approach them?

Even the infrastructure of the wires reflects the infrastructure of the media they serve. It’s content pumped out to be passively consumed by readers. The stuff is good, no doubt, but I’m not talking about the pics. I’m talking about the way they’re leveraged.

The pics are blasted out of a pipe and used by newspapers and magazines who then blast it out of their pipe. The reader doesn’t get much of a choice or input about what pic appears in the paper, or how many pics.

Chances are the front page pic will be the same or similar pic from similar sources, which tells you all you need to know about how economics largely drives editorial, not the other way round.

It’s cheaper to passively accept a wire pic than spend money getting your own people to go and put the newspapers own vibe on the story. So papers start looking the same and then the beancounters wonder why people don’t buy them anymore.

Those people go online and seek out what they want, not passively accept what they’re given. That’s the increasing audience trend, and ought to be our target audience.

It’s something we need to think about, because as well as being economically different, photojournalisms future lies in surrendering the traditional role of the photojournalist as someone who throws out a story and says ‘this is how it is’.

You’ll need to accept people telling you it ain’t necessarily so.

As you raised in the past Eyal, people are already doing that in relation to some recent photojournalistic episodes.

A lot of that questioning (in my opinion) was erroneous, but some of it wasn’t, and it certainly proved one thing – audiences online are NOT passive, and we’d better get used to it…because that’s where the bulk of the audience is going.

The whole infrastructure of photojournalism is going to have to change because the infrastructure of the audience has utterly changed. The quicker we realise that, the better chance we have of still being photojournalists in 10 years time.

by Sion Touhig | 30 Jun 2007 12:06 | London, United Kingdom |
Sion, you could make a fortune printing this in a t-shirt and selling it at the Pams Hotel in September:

“They have no advertising money to spend on sending you to Kaboomistan ‘to find yourself’ for 6 months anymore.”

by Stuart Isett | 30 Jun 2007 21:06 | Seattle, United States |
Sion a better slogan (Tongue in cheek here!)

“Kaboomistan or Bust”

Once again your way with words has cheered my day!

I have a few suggestions to drag our weighty backsides into the 21st century as PJ’s but I will ellucidate later.

Now I have met and merged with Gerry and Mac there is no looking back for me…

I too am part of the www! (And if I turned out looking as good as that bird in Star Trek, you know ‘7 of 9’, I’d be in a hurry to join the Borge as well!)

by lisa hogben | 01 Jul 2007 02:07 | Snowed In Jindabyne, Australia |

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Participants

Alessandra Benedetti, Photographer Alessandra Benedetti
Photographer
(IN SEARCH OF.........)
Rome , Italy
Paul  Treacy, Photographer Paul Treacy
Photographer
(Photohumorist)
New York City , United States
Andy Levin, Photographer Andy Levin
Photographer
New Orleans , United States ( AAA )
md, md
Undisclosed location.
Tony Stringer, Photographer Tony Stringer
Photographer
Cinecittà,Rome , Italy ( AAA )
Ryan Pyle, Photographer Ryan Pyle
Photographer
(Photographer)
Shanghai , China ( PVG )
Sion Touhig, Photographer Sion Touhig
Photographer
London , United Kingdom
Eyal Dor Ofer, Eyal Dor Ofer
Israel , Israel
Stuart Isett, Photographer Stuart Isett
Photographer
(Seattle Photographer)
Seattle,WA , United States
gallery (contains audio)
lisa hogben, photojournalist lisa hogben
photojournalist
sydney , Australia


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