Media Disruption: Time Inc. To Announce Hundreds Of Job Cuts
The disruption of the business of media by Internet media companies continues, as Time Inc. is expected to announce as many as 500 jobs cuts today, reports Kieth Kelly at the New York Post:
Around mid-morning, staffers are expected to start hearing how deep the cuts will be as Time Inc. CEO Joe Ripp unveils what is likely the last big downsizing before Time Warner spins off the publishing group as a separate company later this year.
"It's very nerve racking," said one source inside the company that publishes People, Time, Sports Illustrated and In Style.
There are about 7,800 staff and the company is being prepped for an IPO later this year as parent company Time Warner moves ahead with plans to spin-off it's publishing arm in the second quarter of 2014.
Media companies are facing declining print and digital advertising revenues -- a deadly combination. While subscription revenues for online content are improving, they aren't keeping pace with the decline in advertising income.
Silicon Valley media companies such as Google and Facebook are able to offer big advertisers access to larger numbers of consumers that traditional media companies cannot match. And at much lower rates because they don't have the same costs of producing content.
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Roger Yu at USA Today reports:
Gannett Co., the parent of USA TODAY, said Tuesday fourth quarter earnings fell 12% due to the absence of political advertising from last year's elections and a decline in print ad sales.