Another Round of Layoffs Hits Time Inc.
Between 50 and 75 staffers are said to be leaving the company.
Days after announcing a series of editorial promotions at flagship title Time, parent company Time Inc. has eliminated 50 to 75 staffers through a combination of layoffs and voluntary departures, multiple sources tell Folio:.
Time Inc. did not provide details on the number of staffers let go or which specific areas were impacted, but the cuts are said to have affected most if not all of the company’s operations.
“This is normal course of business as part of our ongoing transformation,” a company spokeswoman tells Folio:.
The cuts come as Time Inc. prepares to report its Q3 earnings to investors on Nov. 9th. Following a second quarter in which the company experienced declines in both print and digital advertising revenue, CEO Rich Battista outlined plans to reduce the company’s costs by at least $400 million by 2019.
“The third quarter represents an important turning point for the company as we are seeing strong momentum and sequential improvement of year-over-year trends for total advertising revenues,” said Battista at that time.
Thursday’s departures follow a larger round of around 300 layoffs — or four-percent of the company’s overall workforce — in June, weeks after Time Inc. seemingly put the brakes on a potential sale, opting instead to pursue “continued aggressive reengineering of the cost structure of the company.”
Since then, Battista’s plan to streamline operations has started to come into focus. In addition to the staff cuts, two weeks ago, The Wall Street Journal first reported that the company intended to reduce either the frequency or the circulation at a number of its print magazines, including Sports Illustrated, Time, and Entertainment Weekly.
As advertising falters, the way forward seems, at least in part, to be more direct-from-the-consumer revenue. The company launched a pair of paid membership programs in August and September, and in a Sept. 22 SEC filing, identified branded content, video, and bookazines as potential opportunities for revenue growth.