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Time Inc. announces reorganization

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Staff writer ▼ | February 5, 2014
Time, Inc. CEO Joe Ripp announced layoffs while eliminating the longtime brand operating clusters that contained the company’s diverse titles.
Time
TimeTime, Inc. CEO Joe Ripp announced layoffs while eliminating the longtime brand operating clusters that contained the company’s diverse titles.


Instead of having News/Business/Sports, Style & Entertainment and Lifestyle groups, a legacy of the former CEO Ann Moore years, the company’s titles—including 25 U.S. magazines like People, Time and InStyle—will be consolidated into one group under evps Evelyn Webster and Todd Larsen, who now run the company’s lifestyle and news/business heads, respectively.

Going forward, Webster will supervise the former Lifestyle group titles along with InStyle, People StyleWatch and People en Espanol. Cash cow People will be added to the news, business and sports titles under Larsen.

"Part of positioning ourselves for transformation means we must also make some substantive and sometimes painful changes to the way we operate and approach our business. 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," Mr. Ripp wrote in a memo to employees.

Mr. Ripp went on to say that Time Inc. would be looking for ways to drive more savings, including exploring real estate options, confirming earlier reports that the company was looking for cheaper office space outside the Time Life building in Midtown.

Mr. Ripp said there would be an unspecified number of layoffs, confirming that the company would look to shore up its finances ahead of the spinoff expected later this year. In the first nine months of 2013, total revenue declined 3 percent from $2.47 billion to $2.39 billion, with circulation revenue off 7 percent.

The reduction is estimated to add up to fewer than 500 people, which would amount to just over 6 percent of the company's 7,800 workforce worldwide, per an insider.


 

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