Meredith to Trim Headcount - Analyst Blog
Meredith Corp. (MDP), a media and marketing company, recently declared that it will lower its headcount by about 45 employees to revamp its Special Interest Media (SIM) business, which concentrates on home improvement publications and do-it-yourself projects in the fields of decoration, remodeling, food and entertainment, and gardening and outdoor living.
Meredith’s objective is to increase its focus on home and food publications, which are more in line with the Better Homes and Gardens brand. The company now plans to issue 90 SIM publications in fiscal year 2011, compared with about 150 planned for fiscal year 2010. This was due to falling advertising revenues as a result of a drop in readership during the economic downturn.
The company will incur a special charge of approximately $5.5 million or $3.5 million after-tax ($0.07 per share) in the second quarter of 2010 as it repositions its Special Interest Media division.
Meredith publishes magazines for women focusing on the home and family. Apart from Better Homes and Gardens, the company publishes Parents, Ladies' Home Journal, Family Circle, American Baby, Fitness and More.
The publishing industry has long been grappling with sinking advertising revenues, and the recent global economic meltdown has worsened the situation. This comes in the wake of a longer-term secular decline as more readers choose to get news free online, thereby making the print-advertising model irrelevant.
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