Consumer Reports is falling on hard times.

A tipster tells FishbowlNY that CR is facing a $7 million shortfall. We’re told that Consumer Reports needs to make 70 layoffs to make budget.

We told you earlier today that Yonkers-based Consumer Reports had announced plans for a major structuring. Among the initial changes, editorial director Kevin McKean, with the company since 2005, is out. His position was eliminated.

Consumer Reports has published a monthly magazine since 1936, aimed at helping the public make the best decisions about new products on the market. The magazine uses an in-house testing laboratory and survey research center.

Consumer Reports keeps its objectivity by not permitting advertising within the magazine.

Consumer Reports has announced a wide-sweeping reorganization, and with that — of course — comes layoffs. Folio reports that the magazine is combining its editorial, testing and survey groups. The first person to feel the resulting squeeze is Kevin McKean, who had been with CR since 2005. His position was eliminated.

Despite the circumstances, McKean had nothing but good things to say about the magazine. “I think for their next chapter, so to speak, it’s actually better that I’m out of there and it’s a good thing for me and a good thing for them — it’s an amicable and mutual decision,” McKean told Folio.

A CR spokesperson acknowledged that there would most likely be more layoffs coming.

Last night’s panel (from left to right) Kevin McKean, Craig Newmark, Rachel Sklar, Ben Popken and Bob Sullivan

Last night, we hit a panel at 92Y Tribeca hosted by the Consumerist and Consumer Reports that focused on online media’s contribution to consumer protection.

The panel, moderated by Consumer Reports‘ editorial director Kevin McKean, featured Consumerist co-executive editor Ben Popken, Craigslist.org founder Craig Newmark, former Huffington Post contributor Rachel Sklar (who is currently working for Abrams Research) and consumer reporter Bob Sullivan, who writes MSNBC‘s the Red Tape Chronicles column.

Throughout the discussion, Sullivan represented a traditional media point of view while Popken commented on the differences a Web site like Consumerist can make in getting companies to recognize and react to consumer complaints. Newmark advocated social media and consumers’ individual responsibilities to speak up, while Sklar, quoting Ronald Reagan, warned consumers to “Trust, but verify,” their sources of information.

“Anybody who wants to can be an authority, can be a blog publisher, can make their opinion known, can make their experiences known, can join in a movement if they wish,” Sklar said.

More after the jump

Read more