Future Publishing is making up to 10 per cent of its 1000 UK-based staff redundant after reporting a 5 per cent drop in revenue.
The company is also looking to close or sell eight of its titles – including What Satellite & Digital TV, Photoshop Focus Guides, Nitro and Redline – according to an email sent to staff by UK chief executive Mark Wood.
In the nine months ending 30 June, UK circulation revenue was down 3 per cent – but it is in the US where Future is struggling.
US earnings are down by around £2m as a result of poor retail returns and dwindling print ad revenues.
Future US will now ‘accelerate transition’into becoming a ‘primarily digital business”, a process that will take 12 to 15 months to ‘allow time for existing subscriptions and other contractual obligations to be fulfilled”.
A restructuring in the UK will see 100 staff lose their jobs, as it looks to ‘recalibrate’the business to ensure ‘faster adaptation to digital and more efficient execution of print”.
The restructuring is anticipated to cost £3.5m in 2011.
According to The Guardian, in an email to staff Wood said the company – which publishes titles such as Metal Hammer and Classic Rock – will either close or sell the following magazines: DVD & Blu-Ray Review, Hi-Fi Choice, What Satellite & Digital TV, Home Cinema Choice, London Tech Guides & Bookazines, Photoshop Focus Guides, Nitro and Redline.
Wood said: ‘These decisions have not been taken lightly but are vital if we are to maintain the momentum of our business.”
Digital revenue at the company was up 40 per cent.