Time Inc, the biggest magazine publisher in the world, is cutting 600 jobs, about 6 percent of its total staff, NYT reported late today, and the company announced internally. The company has about 10,200 employees globally, with about 7,000 in the U.S.
The cuts will start in about two weeks, according to NYT. No specific magazines were closed, but all of them will see severe cutbacks. I am surprised to see Entertainment Weekly surviving this; would have been a logical choice to bite the bullet on.
The company is also doing a complete reorg, and will organize its 24 magazines into three different units, each with a business head. Before your eyes glaze over with the details, here’s the reporting structure within the units: “Each unit will have a similar structure that will include four key executives to direct the ad sales, digital business, financial and editorial efforts across that group. One of the most significant centralizing features of this new structure is that each of the three units will have one General Manager, responsible for all budgeting in the unit, who will report directly to Time Inc. EVP and CFO Howard Averill, with a dotted line to their respective senior operating executive.
Now to the new units:
1) News: merging Time Group, the Fortune|Money group, and the Sports Illustrated group, as well as Life.com and GEE. John Squires, EVP Time Inc. will manage the News Business Unit.
2) Style and Entertainment: People group, InStyle, Entertainment Weekly, and Essence. Time Inc CEO Ann Moore will head this group herself.
3) Lifestyle: merging Real Simple, This Old House, All You, Southern Living, Cooking Light, Sunset, Health, Cottage Living, Coastal Living, and Southern Accents, along with MyRecipes.com and MyHomeIdeas.com. Sylvia Auton, EVP Time Inc. will manage this unit, while also retaining responsibility for UK-based IPC Media.
Many other changes were announced, including the fact that all complementary magazines will start sharing a lot more content. Also, the company announced changes in the Time Inc sales and marketing organization, where Stephanie George will become president of Time Inc. advertising sales and marketing.
Moore’s memo outlining the layoffs, changes and reorg of the company, is posted in full below.
“As all of you are aware, industry conditions have been challenging due to the financial crisis, which has produced sharp decreases in advertising spending. This is expected to continue through most of 2009.