Major Layoffs Ahead at Time Inc.
Time Inc. CEO Ann Moore put to rest weeks of rumors with a Tuesday announcement of a major restructuring in store for the world's largest publishing company. The New York Times reports that layoffs will affect about 6 percent of the company's employees, resulting in more than 600 job cuts.
Moore's internal memo mentioned "a challenge, unlike any we've seen before" -- a reference to the current financial crisis and declines in advertising revenues.
"It's important that we at Time Inc. react quickly to this new reality in order to maintain our financial strength, build our market position, and sharpen our ability to bounce back at the first signs of economic recover," Moore wrote.
Despite the layoffs, which should begin in the next few weeks, none of the company's publications are currently slated to be shuttered. Instead, the reorganization means that Time's 24 magazines will be combined into three new business units: news, lifestyle, and style and entertainment. Each unit will report to a senior executive.
"The goal is to enable our company to move faster, go to market smarter, save significant costs, and employ our editorial resources more efficiently," Moore added in the memo.