Time Inc. Layoffs Will Cost $60 Million
Time Inc.’s move to lay off about 6 percent of its workforce will cost the company at least $60 million in restructuring charges this year.
Time Inc. corporate parent, Time Warner, disclosed the number as part of its guidance for its 2013 financials.
Restructuring charges aren’t new for Time Inc., because the publisher has been downsizing itself for years. In 2012, the company racked up $27 million in restructuring charges, up from $18 million in 2011.
Time Inc.’s Q4 numbers help explain why CEO Laura Lang is cutting some 500 jobs: Revenue was down 7 percent, to $967 million, and ad revenue was down 4 percent. But the publisher is still the world’s biggest, and it still makes piles of money: Operating income was down 3 percent, to $200 million.
Time Warner CEO Jeff Bewkes may have more to say about the future of his publishing unit during his call later this am; I’ll listen in.