Women’s magazine and newspaper publisher Meredith Corp., which puts out Fitness and Better Homes and Gardens among 21 other mags, is back in the black after a tough 2009. The company made $103.96 million in the 2010 fiscal year on revenues of $1.38 billion, after losing $107.08 million in 2009. That same year Meredith laid off 250 workers and closed down Country Home magazine.
But riddle us this, Batman. Meredith tells Folio magazine their operating costs declined only 3 percent in 2010. Meaning the company’s miraculous turnaround seems to have little to do with cutting payroll expenses. We’re no MBA, but we have been laid off a couple of times. It does make us wonder why laying off half a company’s staff seems to be the go-to move when revenues are down.