TOUGH AT TIME: Time Inc.’s new chief executive officer, Laura Lang, has some major problems to fix. On Wednesday, Time Warner’s publishing division reported lower advertising and subscription revenues led to a 3 percent decline in revenues to $773 million while adjusted operating income fell 38 percent to $39 million during the first quarter. During a call with investors, chief financial officer John Martin said that given the current revenue environment, the company will be placing continued focus on “cost controls” for the remainder of the year. As WWD reported in March, Lang hired Bain & Co. to look at consumer trends and develop an overall strategy for the business.
“We need to find areas where we can double down, place big bets and get back on a revenue growth trajectory,” said Lang, in a memo to employees. “We can only accomplish this if we have a very clear assessment of the landscape in which we operate and a cohesive strategy.”
This story first appeared in the May 3, 2012 issue of WWD. Subscribe Today.
Longtime employees at Time Inc. told WWD they remain skeptical that layoffs won’t be part of this new strategy. They’ve been through this before.