News that Martha Stewart Living Omnimedia (NYSE:MSO) is looking for a new CEO sent its shares tumbling.
The company announced that Lisa Gersh will depart as chief executive after a unspecified transition period. Gersh, who previously worked at Comcast‘s (NASDAQ:CMCSA) NBCUniversal, became MSO’s CEO in June 2011, Reuters noted.
Investors did not like the change. Shares of MSO dropped more than 4% in Wednesday morning trading.
MSO is hoping to build up is merchandising business in the face of declining print and digital media results. Merchandising accounted for just 22% of revenue for MSO in 2011. The company is currently restructuring its operations in order to trim expenses, and has only turned a profit in two of the last eight quarters.
Last month, MSO announced that it would lay off about 12% of its 600 employees and shutter two magazines in a bid to reduce costs by $30 million annually.