For those who are wondering, Time Warner Retail did not just lay off its field force. At least, not all of it.
With rumors flying, I called a high-ranking executive still with the company. He didn’t want to go on record, but he did answer my questions.
I had gotten a lot of snippets from a lot of people. People working in agencies who said it looked as if the Regional Managers had lost their jobs; other people in the industry who said the Order Regulation was being outsourced to India.
There’s a kernel of truth in many of the rumors, but, my source explained, the truth is very simple. The industry is changing, and Time Warner Retail is changing with it.
While it’s never easy to lose people, the changes, he explained, were inevitable.
“We followed the trail of business,” he said. With the continued consolidation of the magazine distribution channel—over the past few months wholesalers in Canada, Minnesota, Texas and elsewhere have gone out of business—a consolidation of field personnel became inevitable. As agencies closed, people at the agency level lost their jobs. Much of the business moved to agencies where Time Warner Retail already had people, who were able to accommodate the shift in retail coverage.
While it has reduced its distribution team, my source continued, Time Warner Retail has expanded its marketing team.
“Time Warner Retail is more retailer-centric than any distributor," he said. "We put more focus into calling on retailers than any other part of the distribution channel. That is the portion of our business we are building.”
Time Warner Retail is also, he said, using technology to manage its business to a degree no one else in the industry is doing. Its MagNet-driven AIMS process enables the company to manage distribution electronically from a centralized location to the wholesaler place of business.
Centralized in India?, I asked.
Time Warner has some employees in India, but the order regulation is not outsourced, was the reply. Some backroom operations might be outsourced, but the order regulation, regardless of where on the planet it is done, is done by Time Warner employees, using MagNet data, making changes in the wholesaler system from their remote location.
The source did not provide any details on the number of employees let go. “I won’t give you a number,” he said, “but I will say that we still have by far the largest representation of all the companies in the business. I could probably combine the other three and we’d still have more.
“And any time any business goes through a re-organization, rumors fly. Time Warner Retail lost a few long-timers, and that was tough. But we’re in a tough industry. We have to adjust for the changes in the field. But overall, there have been more positive twists than negative.”