Meredith Corp. announced Wednesday that it plans to lay off 1,200 employees and sell Time and Sports Illustrated, among other assets, as part of an aggressive series of cost-cutting measures following its $2.8 billion acquisition of Time Inc. in January.
About 200 employees were let go this week, the company said, with another 1,000 to be laid off over the next 10 months. Those cuts are on top of the previously announced elimination of 600 positions at Time Inc.’s former subscription fulfillment operation, Time Customer Service.
The downsizing is aimed at lowering Meredith’s annual costs by between $400 and $500 million, the company said. Other actions will include bringing “advertising and circulation performance of the Time Inc. properties to industry norms,” and to raise profit margins on Time Inc.’s digital business to “Meredith’s levels.”
Additionally, Meredith CEO Tom Harty said, the company plans to sell Time, Sports Illustrated, Fortune, and Money, confirming earlier reports.
“These are attractive properties with strong consumer reach,” Harty said in a statement. “However, they have different target audiences and advertising bases, and we believe each brand is better suited for success with a new owner. We are pleased with the inbound interest we have received.”
Earlier Wednesday, Folio: reported that Bloomberg was not one of the suitors interested in purchasing Fortune, contrary to rumors.
This is a developing story.