Primedia Initiates Cuts and Salary Freeze
Primedia announced staff cuts and a salary freeze that is the result of $293 million in net losses, according to the company. After ceasing publication on Brill's Content, staff cuts were also made at About.com, a portal Primedia acquired this year. According to reports, approximately 60 percent of the Web staff was cut in order to lower cost structure by 70 percent. Similar action is also being taken throughout the Primedia company, says the publisher. Additionally, salaries and expenses are being limited, including travel, by 50 percent.
"Our core traditional business currently generates more than $300 million of EBITDA annually, our new media businesses will be cash breakeven soon and we continue to see growth across revenue streams representing two-thirds of our revenues, despite the severe advertising recession," says Primedia CEO Tom Rogers in a statement. He adds that several buyers are being considered the next several months.
The latest news follows Primedia's $515 million purchase of EMAP USA, wherein the company reports that nearly 12 percent of staff there has been cut and offices have been closed in the consumer magazines and media group.