Time Inc. to Lay Off Employees in Reorganization
Company Shifting Approach to Sales
Magazine and digital publisher Time Inc. plans to lay off a number of employees as part of a organizational restructuring, a spokeswoman confirmed to Ad Age on Wednesday. She declined to discuss how many people will lose their jobs, but multiple reports put the number around 110.
"Over the last couple of weeks, we have been realigning our organizational structure to better leverage our content creation, sales and marketing and brand development operations," the spokeswoman said in a statement. "Our primary objective has been to better position ourselves to operate with greater agility and optimize the growth areas of our operation. As a result, there will be some job eliminations. That is always painful but an unfortunate reality in today's business climate."
"I think we all saw this coming," a Time Inc. employee said.
Through a series of memos and releases over the last few weeks, Time Inc. has announced new management; a new editorial structure, in which editorial directors will preside over four brand groups; group general managers to handle the business side; and a more category-focused approach to selling advertising, as Ad Age examined Wednesday.
When asked Wednesday morning about how the sales-side reorganization would impact personnel, Mark Ellis, president and COO of sales and marketing, spoke of redunancies, but did not give any specifics.
"We're always looking at costs," CEO Joe Ripp said in mid-July when asked about an editorial realignment that included the appointment of Fortune editor Alan Murray as Time Inc.'s chief content officer, replacing Norman Pearlstine.
Reorganizations are often accompanied by layoffs, so it seemed to only be a matter of when, and who. The spokeswoman declined to discuss when the cuts would begin.
The company employs 7,200 people, she said.
Time Inc. reports its latest quarterly results Thursday morning.