Real estate developer and newsstand distributor AMREP Corp. has announced the reduction of 75 employees from its Kable Media subsidiary.
The layoffs represent a 4-percent reduction of its 2,000-person workforce and will save AMREP about $2.7 million in operating costs per year, AMREP vice president and CFO Peter M. Pizza tells Folio: Alert. The layoffs were “across the board, not in any one concentration or management level,” he says. AMREP expects to pay about $300,000 in severance costs associated with the layoffs.
In January, Kable Media acquired Florida-based Palm Coast Data. Both companies provide magazine subscription services and product and merchandise fulfillment services for publishers and direct marketers. “In Palm Coast, we acquired a company of a similar size and of similar service to Kable Media,” Pizza says. “Understandably there is a significant amount of duplication in their processes. This is the first step towards consolidating these companies and streamlining the way they do business.”
AMREP has not announced additional plans for Kable’s continued consolidation, but the company hasn’t ruled out combining Kable’s and Palm Coast’s facilities, which are spread over the country, Pizza says.