Apparently, and I have my doubts, people read magazines (in print form, no less) outside of airplanes and doctors’ offices. That number, however, has declined steadily with the birth of the Internet and the growing presence of tablets like the Kindle, iPad others along with the growing size of smartphone screens.
Time Warner: Spinoff and restructuring
Earlier today, Time Inc. announced that as it prepares to be spun-off from its parent Time Warner Inc (NYSE:TWX), it is reorganizing its magazine business and also cutting a number of jobs. The New York Post reported that that number is expected to reach 500 cut positions.
ValueWalk's Raul Panganiban interviews William Burckart, The Investment Integration Project’s President and COO, and discuss his recent book that he co-authored, “21st Century Investing: Redirecting Financial Strategies to Drive System Change”. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors.
In 2008, Time Inc. reorganized its magazines which include Time, People, Sports Illustrated, InStyle, Fortune among others into three separate divisions: Lifestyle, Style & Entertainment, and News & Sports. This is set to change with the consolidation of the three under the management of Evelyn Webster and Todd Larsen. This announcement came via a memo from Time Inc. CEO Joe Ripp earlier today.
Respectively, the two that will run the new structure headed the Lifestyle Group and the News & Sports group.
Who’s staying who is leaving?
Webster was the head of the Lifestyle group. Larsen, who was president of Dow Jones until he joined Time Inc. in 2012, led the News & Sports group. Part of the reorganization is a result of Time Inc.’s acquisition of American Express Publishing and its 400 employees who work for Travel + Leisure and Food & Wine along with Executive Travel magazine, will be shut down.
“We need to dissolve the complex matrixed organization created several years ago, remove layers that slow us down and free up investment dollars to deploy in growth areas,” wrote Ripp. “A single Time Inc. portfolio will give us more operational flexibility, speed decision-making and spur the development of new cross-brand products and revenue streams.”
David Geithner, who oversaw People, InStyle and Entertainment Weekly as president of the Style & Entertainment group, will leave the company. Geithner, brother of former U.S. Treasury Secretary Tim Geithner, worked at Time Inc. for 21 years.
Ed Kelly, who was CEO of American Express Publishing for 25 years, will leave the post next month.
“We will constantly readjust and recalibrate as we build our future,” Ripp wrote.
Time Warner Inc (NYSE:TWX) is planning on spinning off the magazine division in the second quarter to shield itself from waning print advertising sales.