McGraw-Hill Cuts 500 Jobs

The publisher cites the need to cut costs.
Author:
Publish date:

One of America's oldest media companies,

McGraw-Hill

(MHP)

, said it cut 500 jobs in a restructuring.

The New York-based publisher will take an after-tax charge of $14.6 million, or 4 cents a share, in the fourth quarter.

"We are focused on extending the record of consistent growth achieved over the past decade, and the restructuring activities we completed in the fourth quarter have strengthened key capabilities, lowered costs and allowed us to direct resources to areas with the greatest potential for continued growth in the years ahead," said CEO Harold McGraw III.

The company's information and media services segment accounted for a large portion of the restructuring charge, comprising an earlier announced closures of

BusinessWeek

operations around the globe, specifically the discontinuation of print editions in Europe and Asia. The McGraw-Hill education division consolidated its technology operations and centralized its finance department.

The company reaffirmed its 2005 earnings growth target. "We had another year of strong growth and I am pleased to report that for 2005 The McGraw-Hill Companies expects double-digit growth in earnings per share from continuing operations," said McGraw.

Midday, McGraw shares were trading up 16 cents to $51.79.