Reader’s Digest has completed another restructuring, eliminating 150 positions across its worldwide operations. The cuts were in all business groups, including books. In the U.S., Harold Clarke continues to oversee the book group as president and publisher, books, music & trade publishing.
According to a spokesperson, the cuts are part of RD's strategy is to refocus itsefforts on its core "Master Brands", including Reader’s Digest, Taste of Home and The Family Handyman, that have the greatest potential to grow across multiple platforms and through new revenue streams, such as partnerships and licensing in markets around the world. Book publishing, the spokesperson added, "continues to be one of the platforms in our global portfolio."
In the company’s third quarter ended September 30, total revenue increased 4.4%, to $357.0 million, although RD said on a constant currency basis and excluding the effects of fair value adjustments, revenue declined 4.7% primarily due to a significant decline in the Lifestyle & Entertainment Direct segment, declining advertising in the recently sold Every Day with Rachael Ray magazine, and declining renewals on certain titles in North America. This was primarily offset by increased North America book revenue as well as increased offerings and targeted promotion efforts in major European markets and RD’s Humana partnership. From September 2010 to September 2011 books generated sales of $559 million. Net loss in the quarter was cut to $76.8 million from $86.8 million in the 2010 period.
