Martha Stewart Living Omnimedia Inc., the media and merchandising company founded by Martha Stewart, will cut publishing jobs as it focuses on the Web.
The job reduction is part of a plan to save $45 million to $47 million annually, the New York-based company said today in a statement. Martha Stewart Living also will make its Everyday Food magazine into an online publication and drop its Whole Living magazine.
“We have taken decisive action to drive the company’s return to sustainable profitability, in part by reducing our costs for production and distribution and in part by creating even more engagement with our audiences, and better and more valuable opportunities for our advertisers,” Chief Executive Officer Lisa Gersh said in the statement.
The company has posted losses and declining revenue for four straight years, stung by a slump in advertising demand. In addition to the print changes, Martha Stewart Living is shaking up its broadcast division to focus more on Internet services, including AOL Inc. and Hulu LLC.
The shares climbed 2.1 percent to $2.95 at the close today in New York. The company has lost 33 percent of its value this year.