Business

Time cutting 500 from its staff

NEW YORK — Time Inc., the magazine unit of Time Warner Inc., says it is cutting 6 percent of its global staff of 8,000, or about 500 people.

The cuts began Wednesday and will affect domestic and international workers.

Advertisement

In a memo to staff, Time chief executive Laura Lang said the company must become more nimble, and operate on multiple platforms. She said operating more efficiently will create room for critical investments and new initiatives. The unit publishes magazines such as Fortune, InStyle, People, Real Simple, Sports Illustrated, and Time.

Time Warner is expected to release its fourth-quarter earnings next Wednesday.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

In recent years, Time Inc. has been a drag on corporate-level results; revenue from the magazine unit hasn’t recovered from the recession as advertisers continue to shift money out of print formats and onto digital ones.

In 2008, the publishing division took in $4.6 billion in revenue, the same year it booked a one-time impairment charge that resulted $6.6 billion loss for the unit.

According to a survey by FactSet, analysts expect Time Inc.’s magazines to post 2012 revenue of $3.5 billion when the company releases financial results next week. They see revenue declining to $3.3 billion in 2015.

Associated Press

Loading comments...
Real journalists. Real journalism. Subscribe to The Boston Globe today.
We hope you've enjoyed your free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com