Time Inc. — subsidiary of Time Warner (NYSE:TWX) and publisher of Time, Sports Illustrated and Fortune magazines, among others — has denied pay raises for its staff and cuts are coming.
In a leaked memo, CEO Laura Lang informed the firm’s 8,000 employees that there would be no merit raises this year, The New York Post reports. Lang blames the lack of pay increases on the difficulties that the publishing industry is undergoing. She writes:
“While we are evolving, the publishing business in the short term remains challenged. These are unavoidable facts. As we position ourselves for growth in the future we must continue to aggressively manage costs. After much thought and discussion, we have decided we must eliminate the annual merit increase in 2013.”
Sources also told The New York Post that layoffs, which were already planned, are being withheld until early February. The source revealed that as many as 700 positions could be eliminated as the firm tries to trim $100 million in expenses.
Lang did not mention layoffs in her memo.