Future Publishing has let go 55 employees as part of its restructuring efforts.
MCV reports that Future CEO Mark Wood issued an internal memo to confirm the lay-offs, and that affected staff were notified this morning. The lay-offs include the company’s video games editorial and art teams.
The memo reads:
Why do we need to restructure the business? Future is in many ways leading the digital revolution in print media. We are internationally recognised for our achievements. But that transition has no tried and tested roadmap and the journey won’t necessarily be easy.
“Two key factors underpin our current situation: Revenues are coming in below target in certain areas [and] the cost base is too high for the changing shape of the business.
“Where revenues are declining we simply have no option but to look at reducing costs. In July we began a recruitment freeze and we decided to defer the annual pay review. I also tasked the Management Board with looking for other cost savings and headcount reductions – trying always to utilise vacancies where we can.
“Since then various savings have already been achieved by reducing manufacturing and property costs, restructuring some business practices (for example Pre-media) and reducing management costs (for example the recent announcement that publisher roles have been removed and restructured). We have been reducing staff numbers by not replacing vacancies and minimising unnecessary external costs such as travel.
“Today we will begin the next phase of restructuring in a series of targeted areas which, I’m sorry to say, will result in some existing roles being made redundant.
“I very much appreciate and regret that this is a difficult and uncertain time for all affected staff, and it is our commitment to move things forward as quickly as possible within the constraints for the group consultation process.
“These changes are a necessary part of the continuing transition of our business. We must ensure our operations are in the best possible shape for the long term success of Future, and I know that the issues involved are well understood around the business. I want to thank you all for your continued commitment, and as ever I welcome your comments and ideas.”