Information services provider McGraw-Hill Companies, US, has announced that it has restructured a limited number of business operations in the fourth quarter of 2007 to fortify its long-term growth prospects. During the period, the company incurred a restructuring charge of $43.7 million, pre-tax, consisting mostly of employee severance costs related to a workforce reduction of approximately 600 positions. This reduction represents approximately 3 percent of the company's global workforce. The total restructuring charge after tax is $27.3 million, or $0.08 per diluted share of fourth quarter 2007 earnings.
McGraw-Hill Education accounts for $16.3 million, pre-tax, of the restructuring charge. The Higher Education, Professional and International Group has taken steps to consolidate certain sales, editorial, marketing and administrative functions, primarily in its international locations. This is to better address new and existing revenue streams for textbooks, facilitate its strategic shift toward increased investments in digital and custom products, and enable greater efficiencies. The School Education Group also is making a strategic shift toward more digital products, while taking steps to centralise certain management functions and to better leverage outsourcing opportunities.
The Information & Media segment accounts for $6.7 million, pre-tax, of the restructuring charge. Restructuring activities in the segment's B2B Group - which includes BusinessWeek, J.D. Power and Associates, Platts, McGraw-Hill Construction and Aviation Week - are related primarily to the reallocation of certain resources to support continued digital-evolution and productivity initiatives.
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