McGraw-Hill has announced a restructuring of its business operations and corporate functions in the fourth quarter of 2008, the better to 'serve its markets more efficiently in the current economic environment while positioning the company for future growth'. In total, the company laid off 1,045 people last year. 'Our diverse portfolio of businesses and ongoing cost containment efforts have helped lessen the impact of challenging economic conditions in 2008,' said Harold McGraw III, Chairman, President and CEO. 'The actions we are announcing today are a continuation of these efforts and will help us continue to manage the company efficiently through a difficult environment while taking all necessary steps to better serve our customers and shareholders.'
McGraw-Hill incurred a restructuring charge in the fourth quarter of 2008 of $26.3 million, pre-tax, consisting mostly of employee severance costs related to a workforce reduction of approximately 375 positions across the company. The total restructuring charge after tax is $16.4 million, or $0.05 per diluted share of fourth-quarter 2008 earnings. The actions 'will help the Corporation focus its resources on more profitable areas of the business while streamlining its operations to serve customers in a more cost-effective manner'.
When combined with the actions announced in the second and third quarters of 2008, the Corporation will incur restructuring charges for the full year of 2008 totaling $73.4 million, pre-tax, ($45.9 million after-tax) or $0.14 per diluted share.
McGraw-Hill has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion.