McGraw-Hill to fire 925 employees

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New York--Hit hard by the advertising fallout and the recession, The McGraw-Hill Cos. announced plans to lay off 925 employees, or 5% of its work force. Despite the harsh environment, however, the company—publisher of Business Week and Aviation Week and a developer of business information services—said it still expects revenue growth of between 8% and 10% this year. Sales in 2000 were $4.3 billion.The job cuts will be made across McGraw-Hill's divisions. Hardest hit will be the education and information and media services divisions. The education division, which develops training software and editorial content for teachers, will lay off 575 workers. McGraw-Hill's information and media services division will reduce its headcount by 300.McGraw-Hill also announced a pullback from its once-aggressive corporate venturing business. It will write down $19 million of its venture fund investments in technology companies it will no longer support. It did not name those companies. All of the company's moves will result in a fourth-quarter charge of $112 million.McGraw-Hill's stock price, meanwhile, continues to fare better than those of some of its competitors. The company's shares are trading in the $56 to $57 range, off a 52-week high of $70.87.

--Philip B. Clark

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