Reader’s Digest Cuts 280 Positions
In what it is calling a global “recession plan” Reader’s Digest has eliminated about 8% of its worldwide workforce, or about 280 positions. RD president Mary Berner cited a drop in consumer spending and a decline in advertising as the reason for the cuts. A company spokesperson said RD is not closing any businesses, including in its books segments, and that the reductions were “spread globally so as not to have too many eliminations in any one area.” Berner said she hopes the moves will be temporary. Other cost-savings measures include unpaid time off in both fiscal 2009 and 2010 and a suspension of matching contributions to the company’s 401 (k) retirement plan.