McGraw-Hill Cuts 600 Jobs, Another Round Possible
BusinessWeek publisher scales back and restructures in effort to boost returns.
The McGraw-Hill Companies has announced a major corporate restructuring that will result in the termination of three percent of its workforce, or 611 jobs. Nearly 20 percent of those‚ÄĒ114 jobs‚ÄĒcome from the company‚Äôs information and media division, which publishes titles such as BusinessWeek and Aviation Week.
The layoffs are across the board, at all levels and functions. No specific departments are to be eliminated. The announced layoffs at BusinessWeek in December are included in this restructuring, according to McGraw-Hill spokesperson Frank Briamonte.
Also as a result of the restructuring, McGraw-Hill will face a $43.7 million pre-tax restructuring charge for the fourth quarter of 2007, consisting mostly of employee severance and costs. The company‚Äôs restructuring charge after tax is $27.3 million. McGraw-Hill‚Äôs stock has fallen by more than $20 per share over the past 52 weeks, the New York Times reported.
‚ÄúReducing staff is never an easy decision, but we believe the steps we have taken will strengthen our organization, enhance our ability to serve our customers and maximize shareholder value,‚ÄĚ McGraw-Hill chairman, president and CEO Harold McGraw III said in a statement.
Reuters later reported that McGraw told investors at a Citigroup conference that another round of cuts might be necessary. "Hopefully this does it, but we're prepared to do a third tier if necessary." Briamonte declined to comment about additional layoffs.
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