BusinessWeek potentially to layoff 100

Posted by Betsey Reinsborough on November 18, 2009 at 4:39 PM

Just a day after announcing the appointment of new editor Josh Tyrangiel, BusinessWeek is reportedly formulating plans to lay off 100 employees, according to the Wall Street Journal. A round of redundancies of this size would cut the staff by 25 percent.

The business magazine was recently bought by Bloomberg LP from McGraw-Hill. The deal is set to be finalized on the first of December, perhaps why Bloomberg is finalizing its plans for the future of the weekly magazine.

Reportedly there has already been a small amount of layoffs this week, with more to follow. There are some that believe the largest shift won't occur until this spring, when BusinessWeek is to be relaunched and moved into the Bloomberg offices.

In a memo sent to staff at BusinessWeek by chief content officer Norman Pearlstine he outlines the next steps for employees. The memo, which was obtained by Gawker, states, "a selection process has been underway in many areas. This week, BusinessWeek staff members will be invited to a meeting (in person or by telephone) to learn next steps. During the first half of the week, meetings will be held with Marketing, Communications & Events; Circulation and Production; Finance; Technology, and Digital. The remainder of the week will be spent with Sales and Sales Development, and Editorial... One-hour information sessions will be scheduled on Thursday and Friday for U.S.-based employees receiving offers from Bloomberg to learn about benefits, policies and programs." There is speculation that pink slips could be handed out during these meetings as well.

According to the WSJ, the new owners plan to use a plan drawn up by McGraw-Hill prior to the sale as a starting point. Employees interested in staying have already been asked to submit their resumes, news clips, and 250 word statements about their personal qualifications. In addition, contenders for the top editor post were also asked to submit six page memos about their visions for BusinessWeek's integration into Bloomberg.

There have been rumours that some BusinessWeek employees will be asked to work for the Bloomberg news service.

Sources: Wall Street Journal, Gawker