9.09...For some it is SCARY!!!
For weeks now, a scary number has been floating through the hallowed halls of Conde Nast: 25%. That's how much the gossipmongers speculated McKinsey would chop the company's budget. Evil rumors! Now it looks like that frightening number was correct.
With all those rumors, you knew it had to be accurate. More or less. John Koblin talks to insiders who have seen McKinsey's proposals, and comes up with the following summary. Which is bad, but not as bad as it could be for the Nasties:Budget reductions of around 25% at Details, Traveler, Glamour, Gourmet, and Teen Vogue.Unknown budget cuts at the rest of the Conde mags—except the New Yorker, which is escaping unscathed, according to the NYO.The various mag editors get to determine how to achieve their budget cuts.No immediate magazine closures are predicted, but some of the weaker titles may reduce their frequency.Layoffs are coming.
More concrete details for specific titles are sure to come trickling out over the coming days and weeks. But you get the idea. Email us to let us know who's on the way out. Conde Nasties, you have our sympathies. Serving the Rich, Life's a Bitch.
25% reductions are MASSIVE and Convulsive. We are seeing reductions from all industries and now including GOVERNMENT and HEALTHCARE. Now that banks are cutting off credit and raising interest rates to businesses and families....we simply can't borrow and spend anymore.
When most of us are employed because of a borrow and spend economy.....many of us will lose our jobs when we convert to a savings economy because revenues will contract massively. It is now happening in 9.09 and there is simply no way to avoid it......the only way we can reduce the pain is if we restructure debt so that debt can be serviced at the new lower revenue streams.
It is amazing that there are Fools out there that think there can be growth when Consumers, Business, Government, and Health Care are saving and cutting ALL AT THE SAME TIME causing debt to default at historically high rates!!!!!
At some point you will understand....you can only cut your way to growth until there is nothing left to cut.