Since the beginning of 2017, Time Inc. was weighing in the idea of being sold to Meredith Corp. However, things changed on April 28 when the board of executives decided to turn the offer down. Instead, they focused on finding as many methods as possible to grow their company once again. Nonetheless, this goal asks for its sacrifices. The company will go through a restructuring period where around 300 worldwide colleagues will leave Time Inc.
Almost 40% of Worldwide Colleagues Accepted Their Resignation Voluntarily
Chief Executive Officer Rich Batista announced the board’s decision through an internal message. The text explained that the current situation could not lead to growth without a turnaround strategy. They need to redirect most resources towards business expansion and nothing else.
“Today we took a difficult but necessary step in that plan.”
According to the latest annual report, the company has a total of 7,450 global employees. This means that the job cuts are going to represent 4% of the total Time workforce. On the other hand, it remains unknown which sectors within the organization are going to feel most of the impact of this reduction strategy. However, there are signs that IPC magazine group, the Tampa, and editorial sector in New York are going to suffer most of the hits.
Almost 40% of the job eliminations have been done voluntarily. This batch of worldwide colleagues accepted the buyout packages on their own accord. However, the other necessary job cuts will have no other choice than to resort to layoff announcements.
Time Inc. Is Activating in a Dying Industry
The company is one of the large group of businesses that are struggling for survival in a dying industry of the printing press. Much of the company’s budget heads towards Google Adwords and Facebook online advertising channels. The changes Time had to make didn’t affect low-tier employees. On the contrary, the organization decided replacements at the level of senior management in recent months. Time Inc. hopes a fresh leadership will sync it to modern trends.
Image source: TimeInc