No, it’s not “a good thing.” The new CEO of Martha Stewart Living Omnimedia has given layoff notices to a sizable percentage of its staff right before the holidays.
The cuts have been reported to involve 70 to 100 employees, or about 15 percent of the company’s workforce, including some from upper management.
The company has discontinued some print products due to reduced ad revenue (an industry problem) and has encountered legal fees over merchandise agreement disputes with major retailers. However, licensing revenues are said to be stable.
The cuts are expected to save the company about $10 million next year, or about twice Stewart’s estimated compensation, according to media reports.
Although the CEO, Daniel Dienst, has no media experience, he is a former MSLO board member, and he has turned around several struggling metal companies.
While The New York Post reports that the terminated employees were upset, the newspaper says they did look good leaving—after being given MSLO signature tote bags to pack up their belongings.
Additional sources:www.usatoday.com, http://adage.com, http://online.wsj.com
Cuts at publishing companies are no surprise, but ouch–the timing.