Newsweek Is Having An Identity Crisis

It would seem that Newsweek CEO Tom Ascheim and editor-in-chief Jon Meacham’s decision to turn the magazine into a lower-circulation (dropping from 2.6 million to 1.5 million) weekly is not exactly proving to be a profitable one, despite massive restructuring throughout the past year.

According to Newsweek‘s parent Washington Post Company‘s fourth quarter earnings report, the company’s magazine unit, made up solely of Newsweek and Budget Travel, experienced a loss of $29.3 million in 2009. Budget Travel lost a reported $1.2 million, leaving Newsweek‘s new manifestation responsible for a loss of $28.1 million in its first year of change.

Ascheim points out that the fourth quarter was actually the best for Newsweek and that he expects to experience smaller losses through 2010 before “breaking even” in 2011.