J.D. Power Parent Details Job Cuts

Information services provider The McGraw-Hill Companies has given details of restructuring carried out in the fourth quarter of 2007, with the loss of 600 jobs, c.3% of its workforce. Research company J.D. Power and Associates, a subsidiary, lost around the same proportion of its staff.

In a press release last week, Chairman, President and CEO Harold McGraw III said the corporation had 'taken steps to streamline our operations, lower our costs and strengthen our ability to capitalize on key market opportunities'. Of the job losses, he commented: 'Reducing staff is never an easy decision, but we believe the steps we have taken will strengthen our organization, enhance our ability to serve our customers and maximize shareholder value.'

Frank Briamonte, Senior Director, Corporate Communications, told DRNO that the J.D. Power job cuts were 'in line' with the overall figure for the group, and that none of the JDPA losses occurred in Europe. The company has around 800 full-time research staff.

McGraw-Hill incurred a fourth quarter restructuring charge of $43.7m pre-tax ($27.3m after tax), consisting mostly of employee severance costs. Of its three main divisions, McGraw-Hill Education accounted for $16.3m of the pre-tax charge and 304 job losses, Financial Services for $18.8m and 172 jobs, and Information & Media, the segment whose Business-to-Business Group J.D. Power as well as BusinessWeek, Platts and McGraw-Hill Construction, for $6.7m and 114 jobs. The remaining $1.9m of the charge was for restructuring of Corporate activities.

Founded in 1888, the corporation has more than 280 offices in 40 countries and in 2006 had sales of c.$6.3 billion. Web site: www.mcgraw-hill.com.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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