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GRUNER & JAHR SHUTS MAGAZINE DEVELOPMENT UNIT

New CEO Cites Need to Revitalize Core Publications

By Published on .

NEW YORK (AdAge.com) -- Gruner & Jahr USA Publishing today shuttered its magazine development arm, a move that puts to rest hopes that the company might import its celebrity-and-lifestyle weekly Gala in the foreseeable future.

The company laid off two top editors from its ill-fated Rosie magazine, Susan Toepfer and Jane Farrell, as well as one other employee.

"A building must have a solid foundation before adding more stories," said new G&J CEO Russell Denson in an e-mail to employees.

In the memo, Mr. Denson said, "We will focus on revitalizing [G&J] and its core magazines."

The year has proven a tough one for some key G&J titles, such as YM, which saw ad pages fall 46.4% for the first half of the year, and Fast Company, which saw ad pages fall 26.7% in the same period.

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