Newsweek to cut 75 jobs
Newsweek magazine, as expected, told employees Thursday it will cut staff as it adjusts to a weakening financial position and prepares for an overhaul of the magazine early next year that is likely to lead to a downsizing of its 2.6 million circulation.
In a meeting with the weekly’s staff, Ann McDaniel, vice president at parent Washington Post Co., said Newsweek is reopening voluntary buyouts offered in the spring, when the magazine shed 111 jobs. She said the new buyout package isn’t as generous as the previous one and would affect a smaller group of employees but would be open to some who weren’t eligible before.
In a memo sent to employees later in the day, Ms. McDaniel said 65 people will receive the buyout offer and another 10 jobs will be eliminated. All eligible employees will be notified by the end of the day on Friday and they have 45 days to decide whether to take the offer, plus another seven days to change their minds.
In February, Newsweek plans to introduce what Ms. McDaniel called a “new strategy,” including a revamped magazine and Web site, that will support a broader move toward becoming a less print-focused publication.
As part its push to distribute more content online and on mobile devices, Newsweek is expected to significantly reduce its rate base—the number of weekly copies it promises advertisers it will deliver. Newsweek executives said Thursday they hadn’t yet decided how they would adjust the rate base.
Newsweek, like most magazines, operates in six-month cycles and executives said it is committed to its current circulation guarantee of 2.6 million copies for the first half of 2009, but that could change July 1. Newsweek could subtract anywhere from 500,000 to one million copies from that total.
A circulation cut would align with changes to the look and feel of Newsweek and its Web site that the company says it will unveil in February. Newsweek is expected to introduce a more contemporary look to the magazine, featuring more photos and opinion, and devote more resources to distributing its content on the Web and through other digital platforms.
The magazine already had been transitioning to more of a provocative, idea-driven editorial approach in part to cope with a loss of readers and advertisers to the Web. The shift is a nod to the success of magazines like the Economist, which has succeeded in a tough environment by focusing less on costly news-gathering than on leading the discussion of the day’s issues.
On Thursday Ms. McDaniel said, “We’re not becoming a skinny picture book.” She added that Newsweek is not going all-digital or becoming a biweekly, and that the magazine has the full support of the Washington Post Co., “as long as we continue to control costs.” Ms. McDaniel also said Newsweek will not be sold.
“There’s nothing wrong with Newsweek that can’t be fixed with what’s right with it,” Mr. Meacham said Thursday. “It’s about choosing our targets with precision and doing what we do well even better.
“This is not a sinking ship,” Mr. Meacham added. “We are doing all the right things. It’s a universal storm but we’re going to get through it.”
From Russell Adams at Wall Street Journal
