More Time Inc Layoffs Announced in Digital Push
Another string of Time Inc (NYSE:TIME) layoffs has been announced by the mass media company as it cuts costs and shifts away from its traditional print media business.
Time is reportedly planning to shed 200 employees by mid-November. About half of these layoffs are expected to affect the media company’s editorial staff.
The latest round of layoffs follows just four months after the company axed about four percent of its global workforce in a push to go digital. Time had about 7,450 at the time of those layoffs. This means that the total Time Inc layoffs this year have so far affected about eight percent of its global workforce.
The layoffs are seemingly part of the company’s “Strategic Transformation Program” announced by CEO Rich Battista earlier this year; as part of which, the media company is undertaking a number of cost-saving initiatives.
In addition to the layoffs, the company is also in the process of selling part of its print media business in the U.K. The company is looking to sell the “Time Inc. UK” print division, which publishes some of its popular magazines in the region.
Cost-Saving Efforts Causing Time Inc Layoffs
Management has felt pressured to resort to cost-cutting as the company began losing sales on nearly all fronts. The company’s print media unit is particularly facing a decline. In its most recent quarterly earnings report, the company reported a drop of 17% in its print advertising revenue. Newsstand sales of its magazines also posted a substantial 22% decline. Revenue from new subscriptions was also down by eight percent in the most recent quarter.
Battista is now making an effort to save the company’s profitability from falling into the red zone. The layoffs will help the company deliver on its promised $400.0-million cost-savings program.
Desperate times have called for desperate measures at the global mass media company, as digital media outlets continue to take over the traditional print media industry. Consumers are turning away from newspapers and magazines to online news web sites, blogs, and social media for their news and entertainment needs. Advertisers are likewise diverting their ad dollars to digital media companies where they are finding more traffic. This is causing an industry-wide slump in print media industry.
Time Inc is now making an effort to transform itself into a digital media company by scaling back its print business and focusing more on online publishing. However, overcoming competition from the bigger digital platforms, Google and Facebook, is becoming a grave challenge for the company.
Time Inc management has already warned Wall Street to lower its revenue expectations from the company for the upcoming quarter.
“Time Inc. set for another round of layoffs,” New York Post, October 17, 2017.
“Time Inc. Cuts 300 Jobs as Struggling Publisher Seeks Turnaround,” Bloomberg, June 13, 2017.
“Time Inc. Announces Strategic Transformation Program and Reports Second Quarter 2017 Results,” Time Inc, August 8, 2017.