Time Inc. Cuts 105, Restructures Management
Time Inc. announced a management restructuring, including 105 job cuts and a number of eye-opening executive-level changes, in part of an effort to sustain the kind of growth the publishing powerhouse has been accustomed to.
"This new alignment is the result of a very thoughtful and thorough process to delayer our management structure," chairman and CEO Ann Moore wrote in a memo to all employees.
She characterized the move as a simplifying of the management structure to allow for investment in high-growth areas, including online and new launches. That simplifying apparently includes the ousting of longtime staffer and executive VP Jack Haire, news and information EVP Richard Atkinson, Time president Eileen Naughton, and parenting group president David Kieselstein.
Sports Illustrated publisher David Morris was appointed to replace Entertainment Weekly president Andy Sareyan, who was removed from his post. Group markets exec Cathy O'Brien was also removed, though both Sareyan and O'Brien are in talks to stay within the company, according to a Time Inc. spokesperson.
"Unfortunately, as is the case with reorganizations, some executives will be leaving the company," Moore wrote. "We thank each of them for their outstanding contributions and wish them all the best in future endeavors."
As part of the restructring, Time Inc. has appointed a pair of executives; women's, entertainment and luxury group VP Nora McAniff and sports and leisure group VP John Squires; as co-chief operating officers, the first in company history.
McAniff will continue to oversee the titles in her existing portfolio and as well as Time Inc.'s Southern Progress Corporation and UK-based IPC Media. She will be the "Time Inc. executive most directly responsible for the company's advertising revenue stream," according to a statement announcing the restructuring.
Squires, who heads up the interactive division, will have new responsibility for Time magazine and the Fortune/Money Group, and the forthcoming online portal cnnmoney.com . He will also return to managing consumer marketing, with responsibility for the company's other revenue stream.
Moore wrote that the company is on pace for a "record" year in 2005, with advertising revenue up $100 million and total revenue up $225 million.
Moore, McAniff, Squires, executive vice president Michael Klingensmith, senior vice president Kerry Bessey and chief financial officer Howard Rosen will form Time Inc.'s Office of the Chairman.
The restructuring of the business side will apparently not affect John Huey's appointment as editor-in-chief Norm Pearlstine's successor , effective January 1.