It’s been several months since the Reader’s Digest Association emerged from bankruptcy, the publisher is laying off 10 percent — roughly 270 positions — of its worldwide staff. In a memo obtained by Mediaweek, President/CEO Mary Berner said the job cuts are necessary to keep the company’s finances stable.
The tentative economic recovery has helped boost ad spending for magazines versus last year. The RDA has said its revenue declines had been slowing lately. Still, there’s not much to celebrate, as ad revs have fallen 10 percent, though that was partly attributed to a series of reductions in publishing frequency and in its rate base.
In addition to cutting jobs, RDA, which has nine mags (with a million-plus circ) and 78 websites, is also working on moving out of its Pleasantville, NY headquarters to a smaller space in Manhattan.