As educational publishers continue to deal with dramatic changes in the college and school markets, two high-placed executives at Houghton Mifflin Harcourt and Cengage are leaving their jobs: Mary Cullinane, executive v-p and chief content officer at HMH, and John Leahy, chief financial officer at Cengage.
In a filing with the Securities & Exchange Commission on Thursday, HMH reported that Cullinane will step down by the end of July.
According to the filing, Cullinane’s departure is the result of HMH’s reorganization of its product planning, development and marketing function, which Cullinane oversaw.
Cullinane joined HMH in 2012 from Microsoft as senior v-p of corporate global responsibility. She was later promoted to her current role. Her departure comes as the publisher is engaged in a wholesale revamping of its organizational structure, which has resulted in a series of layoffs, the most recent of which took place at the end of April. Overall, HMH could layoff up to 450 employees.
At Cengage, Leahy will step down from his position at the end of the year. Leahy has served as CFO since December 2014 and during his tenure Cengage credited him with "transforming the company's finance organization" and refinancing its debt.
Cengage said his departure is tied to the company's decision to "align our financial leadership with changes in our strategic focus." It added that the shift is "a multiyear" project that will, ideally, turn Cengage into "a true digital learning company."
Leahy, Cengage said, will remain "fully engaged in his CFO role until his departure." Cengage also expect that Leahy will "help ensure a smooth transition to his successor.” A search for his replacement has already begun.
The announcement of Leahy's exit comes a week after Cengage reported that revenue for the fiscal year ended March 31, 2017 fell 10.5% from fiscal 2016, dropping to $1.46 billion. The company did manage to cut its operating loss to $43.1 million, from $72.4 million in fiscal 2016. Cengage blamed the revenue decline on "lower enrollments and continued pressure on print products." which were partially offset by increases in its core digital product sales and growth in its international businesses.