Martha Stewart to Cut Magazines and Jobs

by Nate Wooley | November 2, 2012 11:06 am

Martha Stewart[1]In another sign of the magazine industry’s declining fortunes, Martha Stewart Living Omnimedia (NYSE:MSO[2]) announced plans to discontinue publication of two of its magazines[3]. The 600-person firm will also be laying off about 12% of its workforce. The move comes just as MSO is about to release its third-quarter earnings.

The cuts are part of new CEO Lisa Gersh’s efforts to return the firm to profitability. The moves are intended to save more than $30 million annually for a company that has lost money every year since 2007.

MSO will cease stand-alone publishing of Everyday Food and make it a digital brand beginning next year. It’s also seeking a buyer for Whole Living, the company’s healthy-eating magazine. If one isn’t found soon, MSO will stop printing the magazine and roll it into flagship magazine Martha Stewart Living next year.

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Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/07/martha-stewart-300.jpg
  2. MSO: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSO
  3. discontinue publication of two of its magazines: http://online.wsj.com/article/SB10001424052970204712904578093200973277378.html?mod=googlenews_wsj
  4. Online Ads: Where the Money Really Is: http://investorplace.com/2012/10/online-ads-where-the-money-really-is/
  5. Tom Cruise Files $50 Million Defamation Suit: http://investorplace.com/2012/10/tom-cruise-files-50-million-defamation-suit/
  6. Paul Ryan’s Fitness Photo Shoot Has Some Snarking: http://investorplace.com/investorpolitics/paul-ryans-fitness-photo-shoot-has-some-snarking/

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