Time Inc. said Tuesday it reorganized its magazine business and cut an unspecified number of jobs as the company prepares for an upcoming spin-off from its parent.
The New York Post reported that about 500 jobs are “expected” to be cut. Time Inc., which is the publishing unit of Time Warner, declined to comment on the report.
Six years ago, Time Inc. organized its U.S. magazines — including Time, People, Sports Illustrated, InStyle and Fortune – into three groups: News & Sports; Style & Entertainment; and Lifestyle.
In a memo to staff Tuesday, Time Inc. CEO Joe Ripp said the groups will be eliminated in favor of one single unit managed by two executives – Evelyn Webster and Todd Larsen.
Webster was the head of the Lifestyle group. Larsen, who was president of Dow Jones until he joined Time Inc. in 2012, led the News & Sports group.
The layoffs are partly due to the reorganization and the integration of the magazine publishing unit of American Express that Time Inc. acquired last September. American Express Publishing, which employed about 400, published Travel + Leisure and Food & Wine. Another American Express-owned title, Executive Travel magazine, will be shut down.
“We need to dissolve the complex matrixed organization created several years ago, remove layers that slow us down and free up investment dollars to deploy in growth areas,” wrote Ripp. “A single Time Inc. portfolio will give us more operational flexibility, speed decision-making and spur the development of new cross-brand products and revenue streams.”
David Geithner, who oversaw People, InStyle and Entertainment Weekly as president of the Style & Entertainment group, will leave the company. Geithner, brother of former U.S. Treasury Secretary Tim Geithner, worked at Time Inc. for 21 years.
Ed Kelly, who was CEO of American Express Publishing for 25 years, will leave the post next month.
“We will constantly readjust and recalibrate as we build our future,” Ripp wrote.
Ripp also named Mark Ford as executive vice president of advertising sales.
To shield itself from declining print ad sales, Time Warner plans to spin off Time Inc. as a separate company in the second quarter.
Courtesy of USA Today