Time Inc. revealed it will be laying off as many as 300 staffers across the company in an effort to cut more costs. This is the latest round of layoffs and cost cutting measures the company has undergone in the past several months and comes just weeks after it announced it was not moving forward in selling the company.
The New York Post recently rumored this news was on the precipice and indicated the company had hired a consultant to figure out the necessary details to further gut its rapidly shrinking staff and even possibly sell off some of its assets.
The 300 layoffs represent roughly four-percent of the company’s total workforce.
Chief executive officer, Rich Battista, informed his staff of the cuts today, and indicated the savings would be used to reinvest in its digital assets, including video and native advertising.
Below, Battista’s full memo:
In our recent town hall meeting, I said that one of the key components of our go-forward strategy is reengineering our cost structure to become more efficient and to reinvest resources in our growth areas as we position the company for long-term success. Today we took a difficult but necessary step in that plan as approximately 300 of our colleagues throughout Time Inc.’s global operation will be leaving the company. Some have been informed that their positions will be eliminated, while others have volunteered to accept buyout offers. I thank each and every one of them for their hard work, dedication and service. We are committed to supporting them during this transition with the utmost care, respect and professionalism.
As I’ve mentioned many times, Time Inc. is a company in rapid transformation in an industry undergoing dynamic change. Transformations do take time and patience, but I am encouraged by the demonstrable progress we are making as we implement our strategy in key growth areas, such as video, native advertising and brand extensions, and as we see positive signs of stabilizing our print business, which remains an important part of our company.
I look forward to sharing more information about the progress of these and other key strategic initiatives at the appropriate time. In the meantime, if we remain focused on doing great work and on aggressively leveraging our extraordinary portfolio of assets, I am confident that together we can accelerate our momentum and return the company to growth.
Thank you for your continuing dedication and hard work, and please join me in wishing our departing colleagues well as they pursue new endeavors.