Michael O'Connor Clark is at the Syndicate conference this week, and notes that Time Inc is laying about with a sharp blade:
[from I Love Me, vol. I]
[...] Time Inc. has put out news that they're laying off some of their most senior, long-serving publishing executives.
Included in the end-of-year axe job are Jack Haire, EVP in charge of corporate advertising sales, Richard Atkinson, former EVP of the news and information group, and Eileen Naughton, president of Time magazine.
The New York Times weighs in, noting that on one hand Time Warner is resisting Steve Case and Carl Icahn's recommnedations about rethinking the media giant reformulated into a set of more focused companies, and on the other is faced with an elevator shaft in its shrinking revenues and readership:
[from Time Inc. Lays Off 105, Including Top Executives - New York Times]
"This new alignment is the result of a very thoughtful and thorough process to de-layer our management structure, speed decision-making, simplify communications and reduce costs," Ms. Moore said. [chairwoman and chief executive of Time Inc.]
Many of Time Inc.'s top publications have suffered losses of advertising pages in the last year. Fortune magazine and Sports Illustrated each lost about 20 percent of their ad pages from November 2004 to November 2005.
The round of cuts at Time Inc. comes amid intense year-end cost reviews among the business units of the parent company, Time Warner. The Warner Brothers film and television operation has reduced staff by roughly 300 in recent weeks in what company executives have described as a realignment of the business as it positions itself for new digital business models and responds to a slowdown in growth of DVD sales.
Layoffs last week at Warner's WB television network also came in the wake of the disappointing debut of several new shows and a repositioning of the network for older viewers.
But the Time Inc. move is especially jarring because of the position it has held as the journalistic core of Time Warner, which today is skewed far more heavily toward providing entertainment products than information.
In recent days, Carl C. Icahn, the dissident investor, and Stephen M. Case, the former Time Warner chairman, have called for Time Warner to break itself up as a way to increase its languishing stock price. They have questioned Time Inc.'s role in an increasingly digital media world and wondered how much it has in common with its sibling divisions.
Case wrote a reasoned argument for the spin-out of AOL this week in the New York Times (see Steve Case on It's Time To Take It Apart ), and considering how fast Time is falling, the timing of such a course of action -- if indeed Parsons can come to his senses in time -- become more critical.
I have wondered for some time how media brands like Time, Fortune, and Sports Illustrated will fare in the world of Media 2.0, but its obvious that the media moguls guiding these creaking, antique media machines refuse to snap into reality. They have to stop printing the stupid paper mags, and get with what is happening in social media -- if it isn't already too late.
Time could try to do something really innovative, but instead these dinosaurs will, ineveitably, beat a slow retreat from their former dominant position, denying meanwhile that anything structural has taken place. They shuffle the deckchairs, find some new old media types to line up for the next round of cuts -- oh yes, they are coming -- but they never, never, never actually try a radical alternative. Excepting, of course, the AOL purchase of Weblogsinc -- shouldn't that have been Time Inc.? Are they planning to simply ride the long tail to extinction, until their only readership are octogenarian luddites?
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