Canon Cuts 10 Percent
B-to-b publisher adjusts fiscal revenue outlook, begins cutting costs.
Los Angeles-based b-to-b publisher Canon Communications has reduced its workforce by 10 percent, or about 30 people.
The cuts were made in an effort to “bring staffing in-line with our adjusted revenue outlook,” chairman and CEO Charlie McCurdy told FOLIO:. “We set our fiscal budgets in August and by December, and through January, it became clear that we weren’t pacing at consistent levels. We needed to revisit the outlook and consider some cost-savings measures.”
Some of those additional measures include renegotiating vendor contracts, pairing back circulation and cutting frequencies at several of its magazine products.
Canon in previous years has seen significant growth: roughly 10 percent organically year-over-year, McCurdy said. In November, the company reported a 23 percent increase in revenue for its 2008 fiscal year. The company attributed the increase to operational growth and strategic acquisitions in both its events and publishing businesses.
Publishing division revenues grew 15 percent last year while events division revenues increased 30 percent due, in part, to attendance and exhibitor gains at its traditional trade shows and the launch of new events like BIOMEDevice and MD&M Midwest. Events revenues make up more than 50 percent of the company’s overall revenue mix, according to McCurdy.
Another growth area is digital media, which has seen an average of 25 to 30 percent growth per year, McCurdy said. This year, he projects digital will be up between 15 and 20 percent.