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The rumored and significant cuts at Time Inc. have begun today. According to an internal memo from CEO Laura Lang, about six percent of the company's 8,000 employees will be let go—close to 500 people.
According to the memo, the cuts are impacting a variety of areas throughout the company, both domestically and internationally.
Update: Less than half of the cuts are based in New York and no brands are planned to be shut down or sold off. The cuts are being characterized as a streamlining of operations, with no accompanying restructuring.
"With the significant and ongoing changes in our industry, we must continue to transform our company into one that is leaner, more nimble ad more innately multi-platform. To make this change, we need to operate as smartly and efficiently as possible to create room for critical investments and new initiatives," says Lang in the memo, the full copy of which is below.
The company has not had a round of layoffs of this size since 2008 when then-CEO Ann Moore unleashed a wave of cuts of just about the same size. About 600 employees were let go, accompanying a major restructuring that organized brands under three main groups: News, Style & Entertainment and Lifestyle.
At the time, parent company Time Warner said the cuts cost the company between $100 million and $125 million in restructuring charges.
Today's cuts come just ahead of Time Warner's 4Q and full-year 2012 earnings call, scheduled for February 6th. For the first nine months of 2012, revenues slipped 6 percent in the publishing group compared to the same period in 2011. Operating income dropped 38 percent.
January 30, 2013
To: Time Inc. Employees
From: Laura Lang
Today we are beginning the painful process of reducing our global staff of 8,000 by approximately six percent. I first want to thank the people who will be leaving us for their years of hard work and dedication to the company. They are so much more than Time Inc. employees. They are good friends and trusted colleagues with whom we have worked closely. Losing them is going to be very difficult for everyone. They come from all areas of Time Inc. across our locations - both domestic and international. I am grateful for their service and I know you join me in wishing each of them all the best.
With the significant and ongoing changes in our industry, we must continue to transform our company into one that is leaner, more nimble and more innately multi-platform. To make this change, we need to operate as smartly and efficiently as possible to create room for critical investments and new initiatives. These reductions are part of this important transformation process.
I know the coming days and weeks will be hard and I want to thank you in advance for your patience as we work through this period.
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