Meredith Lays Off 40 Staffers
The cuts, about half of which affect the New York office, represent 1 percent of the company's overall workforce.
Just one week removed from a quarterly earnings report touting "record-breaking" company revenue, Meredith Corp. has laid off 40 staffers, a company spokesman confirmed to Folio:.
The cuts represent just over 1 percent of the 3,800 employees at the women's publishing giant, whose brands include Better Homes and Gardens, Parents, and Shape, among several others. The company declined to provide specifics on which roles were eliminated in this latest round of restructuring — which arrives about 15 months after a similar culling of around 40 staffers in late 2015 — but did note that half of those let go are located in Meredith's New York office, where much of the Des Moines, Iowa-based company's sales and marketing talent is concentrated.
It's worth noting that Meredith's overall headcount has grown considerably since 2013 — when the company employed about 3,000 — and held steady at just under 4,000 over the past few years through multiple rounds of layoffs. So the company has shown a pattern of replacing departed employees, albeit perhaps with nuanced job descriptions.
While the company rightfully celebrates its unparalleled digital female audience, and print advertising lags behind the more lucrative areas of its operation — overall ad revenues dipped last quarter despite 16 percent growth in digital ad revenue — Meredith certainly doesn't appear to be giving up on print. Circulation revenues are up, the company reports, driven partially by the strong newsstand debut of The Magnolia Journal after the shuttering of the more ad-dependent More.
The reorganization comes at a time of heightened speculation over a potential Meredith-Time Inc. merger, rumors that helped drive both companies' stock prices to 52-week highs in recent weeks. Bloomberg reported on January 5 that Meredith had officially approached Time Inc. to express interest in such a deal, but both sides have remained tight-lipped since.
Read the full Meredith statement below.
Over the past several years, Meredith has made a number of investments, including strategic acquisitions; brand relaunches and refreshes; video, mobile, social and shopper marketing expansions; and build-out of our licensing and consumer revenue platforms. In the process, we have created new career growth opportunities for many across our workforce. To capitalize on opportunities created by these investments, we must further invest in growth and align ourselves with market opportunities.
In line with these objectives, today we are announced several organizational changes, including a number of promotions and new assignments. As part of these changes, approximately 40 of our colleagues – which represents about one percent of our workforce of approximately 3,800 – will be departing Meredith, half in New York and half across other company locations. We thank them for their service, and wish them the best in their future endeavors.
This is a developing story.