Time Inc. Looks To Save $400 Million: Staff Could Be On The Chopping Block

Time Inc. unveiled plans for a “strategic transformation” that will yield more than $400 million in savings over the next few years.

In the last quarterly earnings report total revenues fell 10% year to year while operating income fell from $50 million to a loss of $38 million. Ad revenues were down 12% to $374 million, chiefly due to the long-term decline in print ads, while circulation fell 12% to $207 million.

The projected cost savings will be implemented through company-wide initiatives, most scheduled to unfold over the next 18 months.



Time Inc. CEO Rich Battista said the strategic transformation calls for increased focus on high-growth areas, including native and branded content, video, data and targeting, paid products and brand extensions. Together, Battista expects these initiatives to raise Time Inc.’s baseline operating income to a range between $500 million and $600 million within the next three to four years.

Last month, Time Inc. revealed plans to sell a majority stake in Essence, its African-American-focused women’s lifestyle publication. It also confirmed that it is exploring the sale of three of its titles, Coastal Living, Sunset and Golf.