Reader's Digest has implemented its second worldwide restructuring in less than two years, dividing the company into four operating groups instead of its current three. The changes will split RD's book units among three different groups.
The company's direct mail book unit will be aligned with magazines in the newly formed Reader's Digest North America group, which is under the direction of Eric Schrier. The two main book groups in RD North America are Home and Hearth, headed by Keria Krausz, and the Reading series (which includes Select Editions), led by Kathryn Haggerty. RD's trade publishing, which publishes adult and children's titles for the trade market under Harold Clarke, has been made part of the new Consumer Business Services group that also includes Young Families, publisher of children's books for the direct mail market, which is headed by Heather Burgett. Books Are Fun and Financial Services are the other units in the CBS group, which is headed by Robert Raymond. All international book operations are part of Reader's Digest International, which is under the leadership of Thomas Gardner. RD's fourth group, QSP, continues under the direction of Gary Rich.
RD chairman Thomas O. Ryder said the reorganization "will simplify our organization, provide for greater reporting clarity and remove executive-level costs by eliminating some duplicate structures." Among those leaving the company are Thomas Curl, president of Reiman, and Ian Marsh, president of Reader's Digest Europe.
RD has been struggling to turn its financial performance around. Although its domestic operations showed improvement in the second quarter ended December 31, profits in its international operations fell 38% (News, Feb. 3).
