McGraw Hill Said to Accept 80 Buyouts From S&P EmployeesMatt Robinson
McGraw Hill Financial Inc. has accepted about 80 volunteer buyouts from employees in its Standard & Poor’s ratings unit, according to a person familiar with the matter.
The division was seeking to shrink its U.S. staff by about 100 after offering severance packages to employees with business titles of director and above in July. It hasn’t been determined if the unit of New York-based McGraw Hill will pursue further reductions, said the person, who asked not to be identified because the matter is private.
The biggest cuts since the financial crisis are the most wide-reaching changes yet under Doug Peterson, a former Citigroup Inc. executive who was named chief executive officer of McGraw Hill last year. The reductions seek to reduce layers of management and are part of a productivity plan being implemented by S&P President Neeraj Sahai.
Catherine Mathis, a spokeswoman for McGraw Hill, declined to comment on the buyouts.
Peterson has cut expenses since taking the top job, including selling the company’s jet and moving its headquarters to a cheaper location. McGraw Hill reported a 36 percent operating margin for the second quarter, the highest level in at least a decade, while still trailing its main competitor Moody’s Corp.’s 47 percent.