Time Inc. Plans More Job Cuts, Trims 'Fortune'
Time Inc., is preparing a new round of job cuts, say insiders. The reductions may take place in the next few weeks and will be smaller than previous job cuts. Time Inc. eliminated 600 jobs, then 6% of the workforce, in November 2008.
As part of the cost reductions, Fortune magazine will come out 18 times annually starting next year, instead of 25, say magazine executives. The publisher will spend more money on each issue, including on heavier paper and covers with a richer matte finish.
Operating income at Time Inc. dropped 53% in the second quarter on a 22% decline in revenue. Jeffrey Logsdon, a BMO Capital Markets analyst, estimates that the unit's revenue may have slumped another 15% in the third quarter. Parent company Time Warner plans to report earnings on Nov. 4.