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Time Warner to take $100 million charge on Time cuts: sources

NEW YORK
Fri Oct 30, 2009 9:46pm EDT

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People walk in front of the Time Warner Inc. headquarters building at Columbus Circle in New York October 13, 2005. REUTERS/Stringer

NEW YORK (Reuters) - Time Warner Inc (TWX.N) is set to take a restructuring charge of around $100 million for planned job cuts at its Time Inc publishing unit, according to people familiar with matter.

Time Warner, which reports third-quarter earnings next Wednesday, will take the charge in the fourth quarter, these people said on Friday.

Time Inc will use layoffs to reach its cost-cutting goal, though the number of job cuts is expected to be slightly smaller than the 600 jobs, or 6 percent of staff, that it cut last year. Reuters reported the latest planned round of job cuts last week.

Time, publisher of Time magazine, Sports Illustrated and People, is struggling along with other U.S. magazine and newspaper publishers as advertising revenue falls and people turn to free online news and entertainment.

Time's business magazine Fortune said last week it would cut the number of issues it publishes each year to 18 from 25. Rival business magazine Forbes is laying off dozens of staff this week and workers at BusinessWeek are preparing for layoff after McGraw-Hill Companies Inc (MHP.N) agreed to sell the magazine to Bloomberg L.P.

(Reporting by Yinka Adegoke; editing by Andre Grenon)


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