In the magazine world, it’s not just Condé Nast that has been forced to take action as it grapples with a coronavirus-related plunge in advertising revenues.
People and InStyle owner Meredith Corp. has cut salaries for 60 percent of its 5,000 staffers, paused its stock dividend payments and withdrawn guidance about its fiscal 2020 performance, causing its share price to close down 7.5 percent Monday to $13.02.
“The COVID-19 crisis has created an extremely challenging business environment, including significant advertising campaign cancellations and delays,” said Meredith president and chief executive officer Tom Harty in an update to investors.
“While our financial position is strong, given the impact on advertising — which represents approximately half of our revenue mix — we are proactively taking aggressive actions to strengthen our liquidity and enhance our financial flexibility in the near-term to effectively navigate the current environment,” he added.
In terms of salary reductions, WWD understands that around 45 percent of those impacted will receive a 15 percent pay reduction, while the remaining 15 percent, made up of Meredith’s highest paid employees, will take pay cuts of between 20 percent and 40 percent, effective May 4 through September 4. Employees receiving pay reductions will have one day of unpaid
People and InStyle owner Meredith Corp. has cut salaries for 60 percent of its 5,000 staffers, paused its stock dividend payments and withdrawn guidance about its fiscal 2020 performance, causing its share price to close down 7.5 percent Monday to $13.02.
“The COVID-19 crisis has created an extremely challenging business environment, including significant advertising campaign cancellations and delays,” said Meredith president and chief executive officer Tom Harty in an update to investors.
“While our financial position is strong, given the impact on advertising — which represents approximately half of our revenue mix — we are proactively taking aggressive actions to strengthen our liquidity and enhance our financial flexibility in the near-term to effectively navigate the current environment,” he added.
In terms of salary reductions, WWD understands that around 45 percent of those impacted will receive a 15 percent pay reduction, while the remaining 15 percent, made up of Meredith’s highest paid employees, will take pay cuts of between 20 percent and 40 percent, effective May 4 through September 4. Employees receiving pay reductions will have one day of unpaid
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