Recently, there has been a lot of rumors about McGraw-Hill trying to sell BusinessWeek magazine. Right now the weekly business magazine is losing money so the deal could be for only $1. McGraw-Hill would get $1 and the purchaser would pay the magazine’s millions of dollars in debt.
The book publishing company just released a press release about a group to help students learn 21st century skills. Why does this matter? Well the last paragraph steathily describes the 500 layoffs incoming. According to the press release, there will be a cost of nearly $24 million “…consisting primarily of employee severance costs related to a workforce reduction of approximately 550 positions across the Corporation.”
Currently there is no evidence to suggest these will be BusinessWeek layoffs. They will most likely be corporate layoffs at the giant book publisher. I hope BusinessWeek, one of my favorite publications, can be saved along with the other quality publications out there.
5 Responses
laidoffguy
July 17th, 2009 at 1:08 am
1Unfortunately the poor economy coupled with the lack of desire to read printed material, seems to be the demise if not the slow decline of book, magazine, and newspaper publishers. We are becoming a “I want it now” world, and the Internet provides that.
Karema
July 17th, 2009 at 6:20 pm
2If I were you, I wouldn’t worry about BusinessWeek. The vast majority of the layoffs are coming from the educational textbook divisions like SRA/Wright Group (MHLG) and Glencoe/MacMillan (SSG). I used to work for SRA/Wright Group, and ALL of my friends there have been let go.
Jacob
July 17th, 2009 at 6:31 pm
3Thank you for the tip Karema!
Bob
July 29th, 2009 at 5:28 pm
4The magazine has no debt. It is an operating division. Any acquirer would be taking on the liabilities of the losses and MH would avoid the severence liability from firing all that staff and perhaps costs with breaking certain contracts. That’s why no one will pay more than $1 for it.
Lil
August 4th, 2009 at 9:34 am
5Know several people that work at BW – big layoff coming in Sept. Individuals have been told to justify their existence, prove why they should stay. But so far no word of buyer – probably better to get laid off now and get the package from MH rather than take chances with new owner.
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