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Downturn Hammers Magazine Industry, Too
Condé Nast, Time, McGraw-Hill cut jobs as ad dollars slow
By Matt Cantor
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Posted Oct 31, 08 2:40 PM CDT
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(Newser)
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The economic downturn is taking its toll on magazines, forcing layoffs and budget cuts as publications face fewer advertising dollars, Women’s Wear Daily reports; the trouble is compounded as production costs soar while readers turn to the Internet. Magazine ad revenue fell 5% in the first three quarters of 2008, to $18.4 billion, with an 8.8% drop in the third quarter.
Condé Nast Publications will absorb Men’s Vogue into Vogue, and plans layoffs throughout its titles, which include Portfolio and the New Yorker. Time Inc. is cutting 600 jobs; McGraw-Hill has dropped 270. “I don’t care if this isn’t technically a recession yet—it is for us,” Time’s CEO said. And the forecast remains bleak for ad spending growth this year and next.