RDA to Make Worldwide Cuts

Fresh from emerging from bankruptcy, Reader’s Digest Association is cutting about 10 percent of headcount worldwide. In an internal announcement, president/CEO Mary Berner said the cuts were aimed at ensuring the company's healthy financial future.“To that end, we’ve made the difficult but necessary decision to reduce headcount across many areas of the company,” she said. The cuts are expected to impact as much as 10 percent of the staff at the Reader’s Digest flagship, including cuts in the marketing department. The cuts don’t include closing any editions or further reducing its already-diminished frequency and rate base. RDA announced recently that it had improved its results in the first three months of 2010, its first quarter since exiting bankruptcy. At the same time, revenue declined 10.2 percent in the quarter to $413.9 million, which RDA attributed partly to the challenging economy and reduced rate base and frequency at Reader’s Digest, and Berner said she was continuing to look for ways to operate more efficiently. RDA has already made a number of significant cost-cutting moves in recent months. It’s moving out of its sprawling headquarters near Pleasantville in suburban New York City to Midtown; folded struggling products like Purpose Driven Connection, the quarterly Christian-themed magazine it produces with pastor Rick Warren; and seen a number of high-level executives exit the company. Berner said the company continues to look for growth, too, by creating a pay model for Allrecipes.com, its recipes portal; and launching Reader’s Digest Version, a multi-platform portfolio of products offering general-interest information.

Performance Marketing

RDA to Make Worldwide Cuts

Lucia Moses

About

Subscriptions

Events

Publications

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

Lucia Moses