Time Inc. announced on Tuesday that it is set to lay off 300 jobs in the U.S. and abroad through layoffs and buyouts as the U.S.’s largest magazine publisher shapes up its focus on digital media and video opportunities.
The cuts were being made as the New York-based media company, which publishes dozens of magazines including Time, Sports Illustrated and Fortune magazines, is looking to cut costs and reinvest in growth areas.
The job cuts and buyouts will affect 4% of the company’s workforce, or roughly 7,500 at the end of December. The streamlining will include print magazines, corporate and sales, with more than half of the employees affected based in the U.S. However, no details were provided about where the specific job cuts would be happening.
“Time Inc. is a company in rapid transformation in an industry undergoing dynamic change,” Time CEO Rich Battista said in the e-mail. “Transformations do take time and patience, but I am encouraged by the demonstrable progress we are making as we implement our strategy in key growth areas, such as video, native advertising and brand extensions.”
Time Inc. said it hired a consultant to help evaluate the next round of cuts, and that the company, while no longer considering a sale, would consider selling titles or partnering on them with other interested parties, for instance. “We’re seeing some real demonstrable progress,” said Battista.
The streamlining comes less than two months after Time Inc.’s board decided not to sell the company and ended talks with potential suitors.
“We’re re-engineering our entire cost structure,” said Battista. “We’re trying to be as nimble and efficient as possible, and get this process moving.”
Battista also said the next six to 12 months will be critical in terms of the company’s streamlining as it is looking to become more efficient in terms of legacy systems in place. “This isn’t only about cutting employees.”
Time Inc. already has begun hiring more staffers in video, digital products and digital sales, all growth areas, said a company spokesman.
Time Inc. shares were slightly higher at 0.36% to $13.98 per share. It opened at $13.95, with a session high of $14.10 and a session low of $13.85. The stock has a market capitalization of $1.39 billion, and a dividend yield of 1.15%.
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