Time Inc. Lays Off 105Jon Fine
Bad day at the nation’s largest magazine publisher: Time Inc. sacks 105 staffers. In doing so, Chairman-CEO Ann Moore lays off a surprising chunk of the company’s top executive ranks. Among ‘em are longtime Time Inc. veterans like:
Jack Haire, EVP-corporate sales UPDATE: Haire was not aldi off but rather retired, apparently after declining to stay on at TIme inc. in another capacity. Fred Poust, SVP-corporate sales Richard Atkinson, EVP-news and information group Eileen Naughton, President of Time magazine David Kieselstein, President of Time Inc.’s Parenting group Roy Johnson, Senior Editor, Sports Illustrated
Johnson’s the highest profile editorial layoff. (The vast majority of today’s cuts were on the business side.)
Mark Ford, former CEO of Time Inc. unit Time4Media, becomes President and Publisher of Sports Illustrated. Former SI President Dave Morris returns to his prior post of President of Entertainment Weekly, replacing Andy Sareyan. (See below.)
Robin Domeniconi, former President of Real Simple, will oversee corporate sales and marketing. Steve Sachs is now Publisher of Real Simple.
John Squires and Nora McAniff move up to co-COO from their previous perches as EVPs.
Another EVP, Michael Klingensmith—likely the lead runner-up when Moore was named CEO—retains his title, with some broadened responsibilities (scroll down).
Ed McCarrick, Publisher of Time magazine, adds on Naughton’s former title of President.
Cut from current positions, but not fired per se: Cathy O’Brien, President of the Growth Markets division (a bizarre recent creation that lumped together a bunch of underperforming titles: Teen People, People en Espanol, new launch All You, and SI for Kids) Andrew Sareyan, President, Entertainment Weekly.
O’Brien—a favorite of Moore’s predecessor and current boss Don Logan—and Sareyan in discussions with McAniff regarding another position within the company.
1. This sort of shake-up rarely happens at Time Inc. It used to happen once a year at Conde Nast Publications, the next-largest magazine company. But, to the disappointment of those who cover the industry, Conde’s top ranks have been distressingly stable of late. Expect some cocktail chatter at New York media outlets’ holiday parties to focus on whether or not Time Inc. and Conde Nast have actually changed places. (Minus the fancy expense accounts, of course.)
2. Ann Moore is not messing around. But then again, it’s been another lousy year for consumer magazines and an even lousier year for big weekly magazines, which form the backbone of Time Inc. Respective ad page declines, through November, at Time, Sports Illustrated, Entertainment Weekly, and twice-monthly Fortune: 14.2%, 18.5%, 6.4%, and 10.3%. (Full disclosure: BusinessWeek’s ad pages are down 11.2% in the same period, which caused us to make some layoffs of our own last week.)
3. Will this be the last major layoff announcement in 2005 from a traditional media player? Somehow, I’m not optimistic it will be.
Memo can be found after the jump.
From: Moore, Ann - Executive Administration firstname.lastname@example.org
Sent: Tuesday, December 13, 2005 1:32 PM
Subject: Staff Announcement
December 13, 2005
To: Time Inc. Employees
From: Ann Moore
I am very pleased to announce the appointments of Nora McAniff and John Squires as co-Chief Operating Officers of Time Inc., the first in our company’s history.
John and Nora have been invaluable members of the management team since I became Chairman, and I have the utmost confidence in each of them to help lead our company in 2006 and beyond. In their new roles, they will help Time Inc. better capitalize on the opportunities and more effectively meet the challenges of our rapidly changing industry, especially as we evolve beyond magazine and book publishers to a company that creates, sells and delivers premier branded content through whatever platforms consumers demand.
Along with these appointments, we are also reorganizing the management of Time Inc.’s business side to continue the streamlining effort we began over the summer. This new alignment is the result of a very thoughtful and thorough process to delayer our management structure, speed decision making, simplify communications and reduce costs. We needed to reallocate our workload and assets in order to invest in areas of higher growth, including online and new launches. A lot of work still needs to be done -- the new senior management team will work closely with each of the heads of titles and departments to develop specific strategic plans.
In the new structure, the following executives will report to Nora McAniff:
• David Geithner and Paul Caine will run The People Group as Group General Manager and Group Publisher respectively. They will now have oversight of People, Teen People and People en Espanol;
• Stephanie George will remain President of In Style, and she will add Real Simple and Essence to her portfolio;
• Tom Angelillo will remain President and CEO of SPC and will now also oversee The Parenting Group;
• Sylvia Auton will remain Chairman of IPC;
• Robin Domeniconi becomes President of Corporate Sales & Marketing, and will also oversee MNI, TMI and Time Inc. Strategic Communications
• Andy Blau will remain President of Life and will add All You to his portfolio;
• David Morris will return to Entertainment Weekly as its new President.
And the following executives will now report to John Squires:
• Ned Desmond will remain President of Time Inc. Interactive;
• Ed McCarrick will become President and Publisher of Time magazine;
• Mark Ford will become President of Sports Illustrated, and he will continue to run Time4Media until a successor is named;
• Chris Poleway will remain President of the Fortune/Money Group (Fortune, Money, Business 2.0, Fortune Small Business and
• Brian Wolfe will remain President of Consumer Marketing and he will also add Time Warner Retail Sales & Marketing (TDS) to his portfolio.
The senior management team will now form the “Office of the Chairman,” comprising of Nora, John, Kerry Bessey, Howard Rosen and Mike Klingensmith. Kerry will continue to run HR, and Howard will remain acting CFO. Mike will add responsibility for the Time Warner Book Group, Information Technology and Synapse. The following executives now report to him:
• David Young, Chairman & CEO of the Time Warner Book Group;
• Paul Zazzera, Senior Vice President and Chief Information Officer, IT;
• Jon Ellenthal, CEO, Synapse;
• John Redpath, General Counsel of Time Inc.;
• Maurice Edelson, Senior Vice President, Strategic Planning;
• Barry Meinerth, Senior Vice President, Production;
• Joe Mayfield, Senior Vice President, Administrative Services;
• John Reuter, President, GEE.
Unfortunately, as is the case with reorganizations, some executives will be leaving the company. They include two members of our senior management team - Richard Atkinson and Jack Haire. Each one of them has been vital to the health and growth of Time Inc. over the years, for which we are extremely grateful. We wish both of them the absolute best. Other departing senior executives include Eileen Naughton of Time, David Kieselstein of The Parenting Group, and Fred Poust and Steve Buerger of Corporate Sales. We thank each of them for their outstanding contributions and wish them all the best in future endeavors.
Change is never easy, but Time Inc.’s business-side management team of Nora, John, Mike, Kerry, Howard and I are committed to taking advantage of the tremendous opportunities we have for innovation and growth with some of the most valuable brands in the entire media landscape. And as John Huey assumes the editorial helm of our company, I know he, too, is committed to growth and change.
I also want to take this opportunity to update you on how our company is doing. Time Inc. will have another record year (OIBDA) over last year, with advertising revenue up over $100 million and total revenue up $225 million. In fact, the Time Warner Book Group will double their profits over last year; People, InStyle, EW, SI.com, Southern Living, Cooking Light, Fortune Small Business, BabyTalk and Coastal Living will all have record years as well. Real Simple continues to grow, and is now in the top five Time Inc. magazines in terms of profitability. IPC continues to do well (recent launches Nuts and Pick Me Up are performing ahead of plan); and I’m especially pleased with our acquisitions this year of Essence and GEE.
If you participated in the Time Warner Global Employee Meeting last week, you heard from Dick Parsons, Don Logan and Jeff Bewkes that Time Warner has come a long way over the last three years. While we still have challenges, we’re finishing a good year and there’s a lot to be proud of. Time Warner has the best assets in the media and entertainment space, a solid management team and a dedicated and talented workforce. That certainly is true here at Time Inc.
Please accept my best wishes for 2006.