Meredith Lays Off 100 Employees
Restructuring follows period of aggressive expansion at the company.
Meredith has laid off about 100 employees Tuesday as part of a restructuring effort, according to reports.
About a third of the layoffs were concentrated in the New York area, though they were broadly focused and not specific to any single business unit or title.
“In order to maximize the potential of what we are building, we realigned our brands and resources as necessary,” a spokesperson tells Folio:. “Yesterday’s reduction of 100 employees reflected our need to address how to deploy our workforce.”
The move follows a period of aggressive expansion at the company. Meredith notably bought Shape from American Media Inc. in January for $60 million, merging the title with its own health brand, Fitness. Since the fourth quarter of 2014, it had also purchased Selectable Media, a digital ad solutions firm, and Mywedding.com, and struck a major licensing deal with Martha Stewart Living Omnimedia to produce its magazines. It has also seen its digital-to-print experiment, Allrecipes, find widespread success, recently upping its rate base to 1.1 million.
Those deals have led, in part, to the addition of 600 jobs at the company, says a spokesperson. Meredith employs about 4,000 staffers in all.
Update: Meredith reported its fiscal 2015 third quarter earnings Thursday. Overall company revenue was up 8 percent, while its national media group revenue grew 2 percent to $275 million with operating profits of $34 million. The division's advertising revenue was up 5 percent to $118 million, including a 60-percent uptick in digital ad income, largely driven by its acquisitions.