Time Inc. (TIME) , the magazine publisher that rejected buyout offers in April, announced layoffs on Tuesday aimed at cutting costs as the publisher continues to shift its focus to digital platforms.
In a note to Time's roughly 7,500 employees worldwide, CEO Rich Battista said the positions of 300 employees, or 4% of its workforce, will be eliminated through layoffs and buyouts. No details were provided about where the specific job cuts would be taking place.
"Time Inc. is a company in rapid transformation in an industry undergoing dynamic change," Battista said in the e-mail. "Transformations do take time and patience, but I am encouraged by the demonstrable progress we are making as we implement our strategy in key growth areas, such as video, native advertising and brand extensions."
On April 28, Time ended more than six months of buyout talks initiated by Meredith (MDP - Get Report) , the rival magazine publisher, and an investor group led by Edgar Bronfman Jr., the former controlling shareholder of Warner Music. Despite Time's recent struggles to grow revenue amid declining print advertising sales and circulation, its board rejected those offers, arguing that the company's brands -- Time, Fortune, Sports Illustrated and others -- were better off under current management.
Battista was promoted to CEO in September, taking over from longtime publishing executive Joe Ripp, who became chief executive when the publisher was spun-off from Time Warner (TWX) in June 2014. Battista has said Time must become less dependent on print sales, and on People magazine, which remains the company's largest revenue source. Since taking over, he has sought to emphasize the digital growth of its lifestyle titles: RealSimple, InStyle, Cooking Life and Southern Living, among others.
A year ago, Time launched a digital video platform, People/Entertainment Weekly Network, that hosts shows such as BingeWorthy, and numerous profiles and interviews. Time also has started new digital platforms that have little or nothing to do with its flagship publications.
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