Image by Tony the Misfit via FlickrHow does one go about slashing $100 million in operating costs? If you're the Pentagon, you purchase one less defective long-range bomber; if you're the New York Yankees, you take a pass on signing an A-level free agent pitcher.
If you're Time, Inc., apparently, you decimate your publishing empire. The publisher of Time, People, Fortune, and Entertainment Weekly, among other periodicals, won't comment officially, but reportedly, approximately 540 employees will be pink-slipped next week. The estimated 6 percent reduction in the media conglomerate's workforce worldwide of 9,000 employees, follows a 6 percent cutback in personnel by the company last year, when it took a $176 million charge against earnings.
Many of the company's journals are covered by a Newspaper Guild agreement that requires initially seeking buyout volunteers before commencing layoffs. Still, the mass termination is expected to dwarf Conde Nast, the struggling magazine empire that recently let go more than 450 employees. In recent years, Time, Inc. has shutdown several magazines as a cost-savings measure, including Cottage Living, Business 2.0 and Southern Accents. As reported previously by "TUOL," Time will reduce the frequency of Fortune magazine from 25 issues annually to 18, to trim costs further.
Time no longer marches on; it limps badly.