McGraw-Hill Cut 375 Jobs in Fourth Quarter
BusinessWeek publisher eliminated 70 positions from media group.
In another cost-cutting effort, BusinessWeek publisher the McGraw-Hill Company today said it eliminated 375 positions company-wide during the fourth quarter. Seventy of those came from its information and media division.
The majority of the cuts—215—come from the company’s education division. Fifty employees were cut from its financial services group and 40 were let go from corporate.
The cuts represent less than 2 percent of McGraw-Hill’s overall workforce, a spokesperson told FOLIO:.
“Our diverse portfolio of businesses and ongoing cost containment efforts have helped lessen the impact of challenging economic conditions in 2008,” McGraw-Hill president and CEO Harold McGraw III said in a statement. “The actions we are announcing today are a continuation of these efforts and will help us continue to manage the company efficiently through a difficult environment while taking all necessary steps to better serve our customer and shareholders.”
In its third quarter financial statement, the company said it slashed 270 jobs company-wide—140 coming from the information and media division. In 2008, McGraw-Hill eliminated a total of 1,045 staffers, including 210 from information and media, the company said.
As part of the most recent cuts, McGraw-Hill said it will incur a $26.3 million pre-tax restructuring charge in the fourth quarter 2008, consisting mostly of employee severance costs. Total restructuring costs in 2008 related to the workforce reduction are $73.4 million.
Through the first nine months, McGraw-Hill’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.