We had hoped that there would be no more bad news this week. But rumors of impending layoffs at Time Inc. have gained steam throughout the week, with the latest news coming from The New York Times.
Stephanie Clifford reports that as its parent company Time Warner prepares to report its third quarter earnings next week, the magazine publisher is expected to announce that it will cut $100 million in costs. Anonymous sources told Clifford these cuts will “come largely from layoffs,” although a union rep said he hadn’t heard of any coming next week. (A number of Time Inc. employees are covered by a union contract.)
$100 million is a lot, but not compared to what Time Inc. is predicted to report in decreased revenue during the third quarter. As Clifford writes:
“Michael Nathanson, an analyst at Sanford C. Bernstein & Company, said that he expected third-quarter revenue at Time Inc. would fall about 19 percent, to $900 million.”
Time Inc. to Cut $100 Million; Extensive Layoffs Are Expected –New York Times