The McGraw-Hill Companies (MHP) today released an update on its “growth and value plan.” Sounds positive, until you actually read the details.
The company, which in September announced plans to spin off its education unit, said that it will lay off approximately 10% of its workforce. That works out to 550 pink slips, with most to occur by year-end. Twenty percent of the cuts will be within McGraw-Hill’s executive ranks.
The company also said that it would freeze its defined benefit pension plan next April, presumably converting into a defined contribution plan.
All of this is expected to save McGraw-Hill around $50 million in annual cost savings. And that doesn’t even include cuts that the company may include in its “future restructuring updates,” or the impact of increased use of outsourcing.
That’s probably the “value” part of the company’s headline, but it doesn’t exactly scream “growth.”
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