The New York Post is reporting that Time Inc. may cut as many as 150 people, with Time magazine taking the brunt of the lay-offs. Staff at People and Sports Illustrated could also go.
McKinsey & Co. has been working with the management of the large magazine group, trying to find solutions to the revenue pressure created by slowing ad sales and rising costs for postage and transportation.
The plan certainly makes financial sense. According to the Time Warner Inc. (NYSE:TWX) 10-Q, over the last three quarters publishing revenue has dropped 1% to $3.709 billion. Operating income is down 3% for that period to $527 million.
With Time Warner's share price rising and the market excited about the prospects of the company's cable operations and networks, it does not need an earnings drag from its magazine unit.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
1-06-2007 @ 9:08PM
robert Keramdas said...
Time is no more and no less than a vacuous outlet for the DNC and is amatuerish in that effort.
hat effort. Count me as a non-subscriber!