As the sharp decline in magazine advertising rips its way through the industry, Condé Nast has hired consultants, including McKinsey & Company, to “develop new perspectives on optimising our approach to business, growing revenues, and enhancing our brand assets,” CEO Chuck Townsend told staff in an email.
In other words, to make big cuts, and to help figure out how Condé is going to survive the Internet and Great Depression 2.0.
Here’s the memo, obtained by Mediaite:
From: Townsend, Chuck
Sent: Monday, July 20, 2009 4:41 PM
To: Conde Nast Publications – Employees Only
Subject: Important Announcement
The US economy has contracted at a rate not seen in 80 years, forcing companies across America to adjust to the reality of this major economic setback. Our company and our brands have weathered this storm. However, we are not immune to the effects of the substantial revenue losses resulting from the deep and prolonged recession. Consequently, we must realign Condé Nast to be a successful business in an emerging economy that is now predicted to be painfully slow in recovering.
This is a considerable and complicated task, forcing us to rethink the way we do business in many instances and incorporate efficiencies in every step of our process. Beginning this week, I am dedicating myself and a team of my colleagues to this project. We will work with consultants, including McKinsey & Company, to develop new perspectives on optimising our approach to business, growing revenues, and enhancing our brand assets. All areas of Condé Nast will be included in the study.
There is no doubt in my mind that the strength of our brands and people will provide us with the opportunity to participate in America’s economic recovery. Ensuring our financial health is paramount to our ability to be part of that process.
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