Thu, 20 Sep 2018

Meredith fires 200, will lay off 1,000 more Time Inc workers

By Sheetal Sukhija, Copenhagen News
23 Mar 2018, 02:50 GMT+10

IOWA, U.S. - Weeks after buying Time Inc, the U.S. media company Meredith Corp. is said to be looking to sell some of the firm's most well-known titles, including the flagship Time, Sports Illustrated, Fortune and Money.

Further, the publisher, which cut 200 positions this week, has also said that it is planning to lay off 1,000 staffers at Time Inc. over the next ten months. 

The 200 positions made redundant this week primarily include corporate employees in New York, in areas like legal, finance and consumer marketing, the company revealed. 

Previously, Meredith said that it would fire an estimated 600 workers at a fulfilment centre in Tampa, which is in the process of being closed down.

This brings the total number of Time Inc. employees who are set to lose their jobs to at least 1,800.

The company, which publishes magazines such as Better Homes & Gardens and Shape, has also stated that the move comes as it plans to reduce expenses following the acquisition of the magazine publisher in January.

Meredith said that move is part of its integration process, as part of which it is expecting $500 million in cost savings over the next two years.

Sources revealed that most of the inbound interest in each of the four titles haven’t been from strategic buyers but rather from wealthy individuals interested in the subject area. 

With bankers being hired and sales process getting underway, sources believe that there is high possibility that more strategic buyers could express interest.

Tom Harty, chief executive, was quoted as saying in an interview, “We said we’d try to move as quickly as we could,” adding that some staffers will be offered an opportunity to relocate to the company’s headquarters in Des Moines, Iowa.

Harty also added that discussions toward a sale of select Time Inc. titles is going well and that he hopes to sell all four publications within 60 to 120 days. 

He reportedly said, “We are pleased with the inbound interest we have received, and we are confident these brands will be positioned for growth with an owner that shares Meredith's respect for editorial integrity and independence.”

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