McGraw-Hill Cuts 270 Jobs
More than half come from publishing division; income down 20 percent.
As part of its third quarter financial statement, BusinessWeek publisher the McGraw-Hill Companies today said it eliminated 270 jobs company-wide in an effort to â€ścontain costs and mitigate the impact of the current and expected future economic conditions.â€ť More than half of the cutsâ€”140â€”come from its media and information division.
Year-to-date, McGraw-Hill has reduced its overall workforce by 670 positions, including 290 in its financial services division and 240 from its education division.
A McGraw-Hill spokesperson declined to say how many of the cuts come from BusinessWeek. The overall reductions represent about 1 percent of the company's global workforce, he said.
Late last year, the company cut 611 jobs as part of a major corporate restructuring. Nearly 20 percent of thoseâ€”114 jobsâ€”came from the companyâ€™s information and media division.
McGraw-Hillâ€™s third quarter income fell nearly 14 percent to $390.2 million compared to $452 million in income during the same period in 2007. That includes a pre-tax charge of $23.4 million ($14.6 million after tax) associated with the workforce reduction.
Revenue for the quarter was $2.04 billion, down 6.4 percent from last year. Third quarter revenue at itâ€™s b-to-b subgroupâ€”which publishes BusinessWeek and Aviation Week, and includes McGraw-Hill Construction, J.D. Power and Associates and Platts news serviceâ€”increased 5.4 percent to $240.7 million.
Through the first nine months, McGraw-Hillâ€™s net income was down 21.7 percent to $683.5 million, compared to the same period in 2007. Revenue was $4.9 billion, down 5.1 percent.
While accounting for significantly less revenue than the companyâ€™s other segments, McGraw-Hillâ€™s media and information division was the one bright spot, posting $776 million year-to-date, up 5.1 percent from the same period in 2007.
With the down U.S. credit market, McGraw-Hill sustained its biggest losses in its financial segment, with revenue down 12 percent to $2.03 billion. The McGraw-Hill education unit reported $2.13 billion in revenue, down 1 percent.