Time Inc to cut $100 million from costs - NYTimes

Fri, Oct 30 10:28 AM

Time Warner Inc's Time Inc magazine group plans to say next week that it will cut $100 million from its costs, mostly through layoffs, The New York Times reported on its website on Thursday.

The announcement will be coordinated with Time Warner's release of its third-quarter financial results on Wednesday, the Times reported, citing sources.

Time Inc will use layoffs to reach its cost-cutting goal. Reuters reported last week that Time Inc was planning a similar amount of layoffs as it did last year, about 600 jobs or 6 percent of its staff.

A Time Inc spokeswoman was not immediately available for comment.

Time, publisher of Time magazine, Sports Illustrated and People, is struggling along with other U.S. magazine and newspaper publishers as advertising revenue falls and people turn to free, online news.

Time's business magazine Fortune said last week it would cut the number of issues it publishes each year to 18 from 25. Rival business magazine Forbes is laying off dozens of staff this week, and workers at BusinessWeek are preparing for layoffs after McGraw-Hill Companies Inc agreed to sell the magazine to Bloomberg LP.

Sanford C Bernstein analyst Michael Nathanson expects third-quarter revenue at Time Inc to fall 19 percent to $900 million, the Times reported. Time Inc has cut $800 million in costs since 2004, the Times quoted Nathanson as saying.

(Reporting by Robert MacMillan, editing by Leslie Gevirtz)

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