Time Inc. confirmed this morning that long-expected layoffs, which widespread reports place at as high as 500 employees, will begin immediately as parent company Time Warner prepares to spin off its low-performing publishing division. Time Inc., which publishes more than 20 magazines, employees about 7,800 people worldwide.
DC Entertainment, a subsidiary of Warner Bros. Entertainment, won't be affected by either the layoffs or the spinoff.
The New York Post contends the newly acquired American Express Publishing (Food & Wine, Travel & Leisure, Departures), with about 400 employees, is expected to be hit hard by the cuts; its Executive Travel magazine could be shuttered immediately.
Six years ago Time Inc. organized its U.S. magazines into three groups -- news and sports, style and entertainment, and lifestyle -- but USA Today reports that in a memo to employees released today, CEO Joe Ripp announced those will be eliminated in favor of one unit jointly overseen by Evelyn Webster and Todd Larsen. The two formerly managed the lifestyle and news and sports groups.
Along with the previously mentioned magazines, Time Inc. also owns such titles as its namesake Time, Entertainment Weekly, Fortune, Sports Illustrated and People. The spinoff will create the world's largest publicly traded magazine company.