The layoffs at Time Inc, intended to save about $100 million in costs, have begun, and the news group is the first, understandably. About 15 to 20 sales and marketing employees were told today, most of them from Sports Illustrated, reports NYT. The majority of layoffs, around 500, will be done tomorrow, as has been reported before. NYT reports most of the cuts will also come from the news group, fat as it is with increasingly irrelevant titles like Time, Fortune and SI. Keep in mind this is still a very small percentage of the total of about 10,000 employees Time Inc has worldwide.
Tomorrow is also earnings announcement day for parent Time Warner (NYSE: TWX), so likely more discussion of costs will be on the earnings call. Very little of the cuts will come from the online side of operations, as we reported yesterday. Some of the employees are covered by Newspaper Guild, so negotiations with them will also start tomorrow, and company will ask for voluntary buyouts, as DailyFinance reported earlier today.
Update: Our latest coverage is here.