Time Inc. Will Announce Layoffs Next Week, $100 Million Savings? This Could Be Big

Time Inc. is going to announce cost-cutting measures next week to save $100 million, including more layoffs, the New York Times reports.

Since 2004, the company has reduced expenses by $800 million, including laying off 6 percent of its workforce—600 people—a year ago. But the company reports earnings next Wednesday and needs to make the shareholders happy.

A “number” of Time Inc. employees are union-covered, which will give them severance in the event of a layoff, Bob Townsend, local representative for the guild, told the Times. Townsend also told the Times that the guild was usually notified in advance of layoffs, and he hasn’t heard anything yet.

Fun fact: The last round of layoffs saved about $150 million, so we can extrapolate that to save $100 million, another 400 Time Inc. staffers will lose their jobs. The NYP’s Keith Kelly’s got sources saying it’ll be closer to 540, though.

Other fun fact: The last round of layoffs cost Time Inc. $100 million in restructuring charges. Yes, yes, the money comes out of different buckets, but couldn’t you guys have just not laid off 600 people last year and then you’d have your hundred mil?

Publish date: October 30, 2009 https://dev.adweek.com/digital/time-inc-will-announce-layoffs-next-week-100-million-savings-this-could-be-big/ © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT