Cheddar has implemented furloughs for some employees about a week after the streaming, youth-oriented financial news channel was sold to a California-based private investment firm.
In an email sent to employees on Tuesday, executives at Cheddar said the furloughs were “necessitated by unforeseen internal and external factors that required rapid adjustments in our business strategy.”
The precise number of furloughs was not immediately clear, but affected employees were told they could not work for the company while they were on leave. The furloughs were first reported by the New York Times early Tuesday afternoon.
Once a budding startup operation that was set to take on the likes of CNBC and Bloomberg, Cheddar has struggled in recent years as its target demographic of Millennial viewers have gravitated toward mobile-savvy financial apps for their information and investing needs.
At its peak, Cheddar operated two channels: One focused on general news, the other on consumerism and business. Primarily viewed as a streaming operation, Cheddar eventually consolidated its two channels into one as it sought carriage deals with cable companies for additional revenue opportunities.
Those opportunities came by the few, even after telecom giant Altice agreed to acquire Cheddar in 2020 for $200 million.
Last December, CNBC reported Altice was in early talks to sell Cheddar to Regent LP, a Southern California private equity firm. Shortly after Christmas, Altice announced it was selling Cheddar to Regent LP’s media arm, Archetype, as part of a deal that will see Altice paid based on Cheddar’s future performance.
It isn’t known how the furloughs will affect Cheddar’s future performance, which could impact how much Altice receives for the sale.