RBI Cuts Workforce by Another 7 Percent
Second reduction in three months; may consider ‘additional cost-cutting.’
Reed Business Information has reduced its headcount again, this time eliminating 7 percent of its overall workforce. It’s the second round of job cuts in less than three months for the b-to-b publisher.
In a statement, an RBI spokesperson said the cuts were “in response to economic conditions that continue to be unfavorable.” Affected employees will receive “severance benefits according to company policy.” The spokesperson declined to say exactly how many employees were affected by the cuts.
In January, RBI reduced its workforce by 7 percent in association with a company-wide reorganization and instituted a salary freeze. “A companywide salary and hiring freeze remains in effect, and the company may consider additional cost-cutting options, including mandatory unpaid leave, if market conditions persist,” the spokesperson said.
In a memo to staffers, RBI CEO Tad Smith attributed the decision to “our quarterly forecast for the full year and the revenue outlook [that] continues to concern us.” Smith said Reed’s financial projections are “worse than our already conservative expectations for 2009.”
Contents of the memo were first reported by Sharon Waxman’s TheWrap.com.
Earlier this month, RBI closed all but one of the magazines published under its Associated Construction Publications group, which consisted of 14 titles serving the heavy, highway and non-residential construction industries.
London-based Reed Elsevier pulled RBI off the block late last year after bids were said to have fallen from approximately $2 billion to $1 billion.