A few days after announcing that it was looking to sell BusinessWeek, publisher McGraw-Hill has revealed more cost cutting moves — namely laying off 550 staffers.
McGraw-Hill revealed the layoffs at the bottom on a press release today, which touted a new focus for the company’s educational division. While “strengthening its position” in the education market, McGraw-Hill has “realigned select business operations to further strengthen some of its other core offerings and to increase operating effectiveness and efficiencies.”
This means cutting 550 employees across the board, a move that cost the company $24.3 million in severance costs during the second quarter of 2009. Presumably, these costs will be worth it in the long run.
According to the company, 340 people were let go from the education division, in line with that segment’s reorganization to focus on PreK-12 education. 85 people in the financial services division lost their jobs, mainly from S&P’s Investment Services, the non-rating part of the S&P operations, McGraw-Hill said. And 125 were cut from the company’s information & media division, as the company moved towards strengthening its digital content and “the consolidation and automation of certain functions to enable a better customer experience, greater coordination and faster execution.” Gawker reports that 40 people were let go in New York and the Los Angeles office has been shuttered. Calls to a company spokesman have not yet been returned.
Now we’ll see if McGraw-Hill can make some money off its sale of BusinessWeek.