Time Inc. Looks To Save $400 Million: Staff Could Be On The Chopping Block

Posted on 8/9/2017 by Jim Pickerell | Printable Version | Comments (0)

Time Inc. unveiled plans for a “strategic transformation” that will yield more than $400 million in savings over the next few years.

In the last quarterly earnings report total revenues fell 10% year to year while operating income fell from $50 million to a loss of $38 million. Ad revenues were down 12% to $374 million, chiefly due to the long-term decline in print ads, while circulation fell 12% to $207 million.

The projected cost savings will be implemented through company-wide initiatives, most scheduled to unfold over the next 18 months.



Time Inc. CEO Rich Battista said the strategic transformation calls for increased focus on high-growth areas, including native and branded content, video, data and targeting, paid products and brand extensions. Together, Battista expects these initiatives to raise Time Inc.’s baseline operating income to a range between $500 million and $600 million within the next three to four years.

Last month, Time Inc. revealed plans to sell a majority stake in Essence, its African-American-focused women’s lifestyle publication. It also confirmed that it is exploring the sale of three of its titles, Coastal Living, Sunset and Golf.


Copyright © 2017 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

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