Chuck Townsend: 'We Have to Make Additional Difficult Decisions to Manage Costs'

We've known for a while now that even the Death Star that is Conde Nast wasn't immune to the current economic crisis, and it looks as though the company could be in for some more cuts in the near future. CEO Chuck Townsend basically says as much in a memo sent around to the entire staff today. "Unavoidably, as the downturn extends, we have to make additional difficult decisions to manage costs and ensure our financial well-being," the CEO wrote. As is required in these sorts of memos, Townsend also trumpets the Conde brand and speaks to the strength of the product. While advertising pages are down, Conde Nast is gaining critical ad revenue market share through the early part of 2009. Perhaps more importantly, our consumer connectivity, as measured in key circulation statistics, is particularly strong. You know what's a great place to increase consumer connectivity? THE INTERNET! Full memo after the jump. From: Townsend, Chuck Sent: Thursday, March 05, 2009 5:04 PM To: Conde Nast Publications Subject: Managing Through Challenging Times I continue to believe that there are two things that make our Company truly unique world-class brands and remarkable employees. This statement is even more true today as I watch how Conde Nast is managing through this challenging economy. While advertising pages are down, Conde Nast is gaining critical ad revenue market share through the early part of 2009. Perhaps more importantly, our consumer connectivity, as measured in key circulation statistics, is particularly strong. So, while our Company is not immune to the economic stress that has been experienced by the media community, we have made adjustments to secure our ongoing stability, just as each and every one of us has had to personally deal with the economic challenges we face. Unavoidably, as the downturn extends, we have to make additional difficult decisions to manage costs and ensure our financial well-being. These decisions involve all of us. We'll all have to do more with less and accept that some of the benefits and resources that were available to us in robust economic times will have to be scaled back and revisited when the economy and our business recover lost ground. The best course of action is for us to prudently and responsibly manage our business costs and expenses through these troubled waters, assuring us the opportunity to fully participate in the recovery that lies ahead. At that time, we will take great pride in what we accomplished. I can only ask that you join me in these efforts to ensure the continued success of our great Company.

Fishbowl

Chuck Townsend: 'We Have to Make Additional Difficult Decisions to Manage Costs'

Noah Davis

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Noah Davis