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VOL. 36 | NO. 44 | Friday, November 02, 2012
Martha Stewart downsizes magazines, to cut jobs
NEW YORK (AP) — Martha Stewart Living Omnimedia Inc. is downsizing its magazines and will cut publishing jobs as it increasingly focuses on online video and other digital content.
The lifestyle, media and merchandising company said Thursday that the move could save it $33 to $35 million per year. It did not say how many employees are being eliminated, and a message was not immediately returned.
Martha Stewart will stop publishing its monthly "Everyday Food" magazine as a standalone publication, instead periodically wrapping it into the company's flagship "Martha Stewart Living" magazine. It will make "Everyday Food" content available on the company's website, a YouTube channel and through a daily video newsletter.
The company will also seek to sell its "Whole Living" health and lifestyle magazine. If the magazine cannot be sold, its content may also be incorporated into other company products.
The New York company plans to focus more on online video, with partnerships with AOL, Hulu and Apple Inc.'s iTunes store.
Lifestyle and home guru Martha Stewart, the company's founder and its non-executive chairman, said an increasing focus on digital media would help Martha Stewart Living connect with audiences.
The cuts announced Thursday, combined with previously announced restructuring efforts in its broadcast TV division, are expected to remove $45 to $47 million in annual costs from the company's operating costs.
Shares rose 4 cents to $2.95 in after-market trading.