Essence Magazine, an iconic publication which has served Black women for more than 50 years, is forced to furlough its staff because of the coronavirus.
The company announced the devastating impact of the pandemic in a statement on Wednesday.
"Six months into an unprecedented and continuing global pandemic, COVID-19 has had a broader and longer-lasting impact than anyone expected – and Essence Communications, Inc. (“ECI”) has not been immune to it," Essence stated.
Although they will now stop working for the publication, the furloughed employees will be paid throughout this week and they will have their medical benefit premiums covered throughout the furlough.
"We will remain in touch with all of those impacted to provide relevant and pertinent updates regarding this matter as we have them," the historic publication stated. "We do not anticipate that any furloughs will exceed six months."
The company said Essence was enjoying continuous growth before the pandemic, seeing the expansion of its magazine, the Essence Festival of Culture and its digital platforms. After the recent setback, the company is determined to get back on track.
"We remain committed to making the investments necessary to drive deeper and greater cultural impact via our magazine, digital, and virtual experiences, as we also stand at the ready for the much-anticipated return of live experiences," the executives stated.
"Our commitment to the business remains the same, and we want to be clear that ESSENCE magazine (digital and print) and ESSENCE Festival of Culture are not going anywhere," the statement continued.
Essence is one of countless Black-owned companies which has been devastated by the pandemic. According to a report from The New York Fed obtained by CNN, 41% of Black-owned businesses across the country were forced to shut down permanently between February and April. In comparison, 32% of Latino businesses, 26% of Asian businesses and 17% of white businesses shutter during the same period.
Researchers have identified the lack of financial savings, absence of access to capital and funding gaps that existed before the pandemic as the key factors for the disparities, CNN reported.
The number of Black business owners fell by 440,000 between February and April, as Blavity previously reported.
"It goes without saying that the health crisis halted large-scale live events and having to cancel the ESSENCE Festival of Culture experience in New Orleans this past July affected our business and our revenue," the publication stated.
According to Columbia University, entrepreneur Edward Lewis founded Essence in 1969, branding the magazine as a platform for Black women. Lewis continued to expand the company in the 1980s and 90s, incorporating a weekly television show, fashion line and mail-order catalog, as well as an annual awards show and Essence music festival.
In 2018, Beauty entrepreneur Richelieu Dennis bought the magazine from Time Inc., according to the Wall Street Journal.
"We are confident that the actions we are taking now will help ensure that ESSENCE is here to thrive for another 50+ years as an independent Black-owned media business," the publication said in its latest statement.
Essence made headlines over the summer after allegations of sexual misconduct and toxic workplace culture from owner Richelieu Dennis. In September, an investigation into the allegations concluded no sexual harassment took place.
Correction: an earlier version of this article incorrectly stated Richelieu Dennis was the CEO of Essence and resigned from that position. He is the owner and did not resign from any role within the company.
