DES MOINES, Iowa - Des Moines based Meredith Corporation, which owns People Magazine, is temporarily cutting pay for 60% of its employees.
Roughly 2,200 of it's workers will get a 15 percent pay cut, and its higher paid employees will get a reduction of 20 percent to 40 percent.. The New York Times reports the pay cuts will last from May 4th through September 4, and some employees will work under reduced hours.
Meredith President and Chief Executive Officer Tom Harty says the drop in advertising revenue has created an "extremely challenging business environment." The company is also abandoning its earlier projection for its financial performance and will not issue dividends until market conditions improve.
Meredith bills itself as the No. 1 magazine operator in the U.S. It also owns 17 television stations, including seven in Top 25 markets and others in the Top 50.