Despite several expansions and acquisitions, it seems Meredith Corporation is preparing for a downturn.
As reported by The New York Post, yesterday Meredith announced cutbacks of 80 people. A spokesperson confirmed that specific number to the newspaper after rumors swirled the pink slips were going to exceed 100.
The company issued a statement: “We must dedicate resources to meet the demands of the evolving business landscape, and operate as efficiently as possible. As part of the process, today we are announcing selected work-force reductions of 80 employees companywide. These actions will enable us to allocate additional resources to our key strategic-growth intiatives.”
As The New York Post pointed out, it appeared the media company led by CEO Stephen Lacy was doing well as of late. In 2011, Meredith purchased Family Fun from Walt Disney for about $20 million. Plus, it grabbed Everyday with Rachael Ray from Reader’s Digest and also purchased Eating Well, as the article reported.
Even in January things seemed to be in full glory when Meredith purchased Allrecipes.com. Despite these big moves, the layoffs are reportedly the result of a sudden decrease in advertisements; the first quarter of 2012 reflected ad page reductions of 17.8 percent.