AdAge is reporting that the company is planning cuts, maybe as early as this week, to the Conde Nast Media Group, which apparently handles more than 80% of the company’s revenue. The group takes “the lead on big corporate marketing programs and contracts with advertisers that buy across three or more Conde titles.”
Meanwhile the Observer quotes an insider as saying the cuts Conde made last October were “half-assed.” Furthermore, “Conde Nast publishers and editors have been told by the chairman, Si Newhouse, and the CEO, Chuck Townsend, in the past two weeks to cut yet again, the majority being told to cut 10 percent from their non-salary, discretionary budgets, according to five Conde Nast sources with direct knowledge of the budget cuts.” This to take place by the end of the month.
And finally, Keith Kelly says Conde’s pension plan is already feeling the pain. Per the Post: “In a letter to employees over the weekend, the company run by S.I. Newhouse Jr. said that whatever money was in the pension plan would now be frozen and that Conde Nast parent Advance Publications would no longer contribute to the plan. What’s more, employees who were not yet vested in the pension plan will no longer be eligible to become vested.” A spokesman for the company says the plan is being “modified, not eliminated.”