TIME INC. SHRINKS DETROIT OFFICE

Reorganization Puts Tim Hildebrand in Charge

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NEW YORK (AdAge.com) -- Time Inc. has reorganized and reduced the size of its Detroit sales office. Four sales and marketing jobs were added, but seven sales posts and five assistants’ jobs were cut.

Chairwoman-CEO Ann Moore is under heavy pressure to meet Time Warner’s projections for its publishing unit this year, amid red ink at the parent company and weak ad-sales performances at certain titles.

'Not immune' to industry woes
During the American Magazine Conference that concluded Oct. 18, Time Warner’s chairman of the media and communications group, Don Logan, alluded to those expectations. “We are not immune to the problems facing the industry, but even in these challenging times, we are still continuing to invest in launches and acquisitions,” he said. “We have increased our profits year-over-year for 13 out of the last 14 years, and we expect to be up in 2005.”

In an internal memo, Ms. Moore said that the new structure in Motown will help the company grow and better serve its clients. “These changes do not come without difficult choices and there will, in fact, be a reduction in our staff,” she wrote.

Detroit staffers learned of the reorganization yesterday during a visit from Jack Haire, exec VP. Among the changes, Tim Hildebrand, the founder and president of Time Inc. Strategic Communications, was named regional VP for Time Inc., reporting to Mr. Haire. All Detroit managers will report to both Mr. Hildebrand, who will initially oversee the Ford account, and their individual magazine managers. And the company added several positions at SI.com and CNNMoney.com.

New staffers for non-auto accounts
A new team was also formed in Detroit to oversee non-automotive accounts there, suggesting that the Time Inc. sees more money to make in nearby markets like Ohio, where clients including Wendy’s International and Goodyear Tire & Rubber are based.

But carmakers are on every publisher’s mind.

Automakers have slashed ad outlays this year, spending a total of $5.4 billion during the first half, down from $10.6 billion during the first half of last year, according to TNS Media Intelligence. Magazines have not been spared as they’ve watched automotive ad spending fall to $945.5 million during the first half from $1.9 billion in the first half of 2004.

Time Warner plans to report its third-quarter results on Nov. 2.

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