Rafat Ali at paidContent scored a copy of Allen & Co’s preliminary marketing book for Newsweek. The book provided some helpful financial detail.
As expected, Newsweek is losing a boatload of money–$56 million last year.
Well, mainly the print advertising collapse.
But there are some other reasons, too.
- The 6 employees in “dining services”. (Dining services!)
- The 4 employees in the “office of the CEO” (I’m a CEO. How come I don’t have 4 people in my office? Oh, wait, I have 12 people in my office. The whole editorial team!)
- The 17 employees in IT. (What do these 17 folks do, exactly? Maintain Microsoft Office? These aren’t the folks who build and maintain the web site, by the way. There are another 10 of those.)
- The 19 employees in accounting.
- The 21 employees in manufacturing and distribution (M&D).
- The $102 million the company spent last year manufacturing, distributing, mailing, and managing circulation of the print magazine. It’s worth noting that this was actually a lot less than the the company made from selling the magazine ($80 million) and advertising in the magazine ($70 million). If there’s good news here, in fact, it’s that even factoring in the $29 million cost of editorial, the money taken in from the magazine ($150 million) was more than the cost to produce it ($131 million). Well, unless you count advertising and marketing ($19 million). And corporate overhead ($55 million).
- And then, yes, the 92 employees in print editorial and the 18 employees in online editorial, and the rest of the publication’s 379 employees worldwide.
Here are the detailed financials. And here’s the relevant employee chart from the book:
Now, we don’t mean to be the bearers of bad news here, but we’re willing to bet that new Newsweek (post-sale and restructuring) won’t be employing 6 people in “dining services” or 4 in the “office of the CEO.” The IT department will likely be considerably smaller, as will accounting, M&D, and the rest of the overhead. Editorial will almost certainly shrink. The sales team is probably in good shape (unless the buyer runs a print sales organisation or decides to shut the print magazine down).
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