Time Inc. Cuts Massive 300 Jobs in ‘Rapid Transformation’, Move Similar to Nigeria’s CBS
In reflection of the global economic downturn and business uncertainties, Time Inc. is cutting roughly 300 jobs, or 4% of the global workforce, in an effort to restructure its priorities to the video and digital landscapes.
This move is similar to Nigeria’s Continental Broadcasting Services (CBS), when the owners of the Radio and TV continental among others sacked 145 members of its workforce in a business reorganization move announced less than two weeks ago, precisely on 2nd June, 2017.
The American media conglomerate released its Tuesday as Time Inc. — the publisher of Sports Illustrated, Fortune, People and Time, among others — navigates a period of “rapid transformation,” according to a memo from CEO Rich Battista. The year began with speculation that Time Inc. would find a buyer, but no deal was struck as the magazine group doubled down on pursuing its “strategic plan.”
That plan was to focus more on video and digital, as well as native advertising, digital sales, licensing and branding.
The news came weeks after Battista sent a company-wide memo on May 23, along with a survey that sought to “help us better understand our culture” and find ways Time Inc. can “align on a strategy and vision, execute against that strategy and renew itself over time.” The survey conculded on June 1, according to people inside the company.
Layoffs and buyouts inevitably come with restructure. Today’s announcement of cutting roughly 300 global jobs — a little more than half of which are based in the U.S.— leaves Time Inc.’s global workforce at about 7,200 employees, about the same total that followed last year’s reorganization.
The company refocus will aim toward digital sales, and Gregory Giangrande, Time Inc.’s head of human resources, said the company expects a “hiring spree for digital sellers.”
It’s no secret Time Inc. has struggled, along with other traditional print publications, as they refocus on digital media. Time Inc.’s print advertising revenue declined 21% to $212 million in this year’s first quarter.
In its public quarterly report, the company noted these declines were due to, among other factors, the reorganization of the advertisings sales force. The past year has seen a couple reorganizations and strategy changes in advertising sales.
Reorganization and layoffs have led to a decrease in morale within the company, according to people within Time Inc. One executive in the company, speaking under condition of anonymity, said “this latest wave will accelerate the [company’s] decline.”
Internal anxieties weren’t soothed when Time Inc. hired McKinsey & Co., a cost-cutting consultancy, to find ways of restructuring last month. McKinsey & Co., according to a source within Time Inc., has “set up shop in closed conference rooms.”
Giangrande and Time Inc. Battista disputed reports of declining morale from within the organization. Giangrande said the remaining 7,200 Time Inc. employees are “energized” and that “morale is not impacted by and large by this action today.”
“Clearly, nobody is happy that 300 employees are leaving the company,” he said.
Battista also credited the way Time Inc. has been upfront about reorganization. The company has not shied away from declarations of the re-engineering of cost structures.
This development gives credence to recent CBS staff rationalization being orchestrated by Irishman Andrew Hanlon, Chief Executive/ Managing Director, CBS who was employed in February 2017 and charged with th e responsibility to re-organise and properly align all aspects of the CBS’broadcasting media empire.
With Agency report for adage.com