Time Inc. is getting rid of 300 positions — roughly 4 percent of its work force — through layoffs and buyouts, according to a Tuesday memo from Time CEO Rich Battista that has been obtained by multiple outlets, including Reuters.
Time’s stock price has dropped 16 percent over the past 52 weeks, as the longtime magazine company — which was part of Time Warner Inc. before being spun off in 2014 — has struggled to adapt as new, digital-first competitors have emerged. The company’s stock surged briefly earlier this year after word of Meredith Corp.’s interest emerged, but a deal to acquire the publisher of periodicals including Time, Sports Illustrated and Fortune ultimately failed.
Tuesday’s layoffs and buyouts are part of a plan to cut publishing costs and invest in growth areas like video, according to Battista’s memo.
“As I’ve mentioned many times, Time Inc. is a company in rapid transformation in an industry undergoing dynamic change,” Battista said in the memo.
For the three months ended March 31, Time reported revenue of $636 million, down 8 percent from the corresponding period the previous year and its fourth consecutive quarterly decline. The company had a net loss of $29 million, bigger than analysts expected, and lowered its dividend from 19 cents to 4 cents a share.
Among the journalists affected by the move was Fortune senior writer Mathew Ingram, who tweeted that he had been laid off.
I know this first hand, because I am one of them. Just have to pack up my virtual desk and then it's adios, Time Inc.! https://t.co/ckK1oBjsdn
— Mathew Ingram (@mathewi) June 13, 2017