Perseus Laysoff 20, Will Cut Title Output in 2010

By Jim Milliot -- Publishers Weekly, 6/22/2009 10:04:00 AM

Citing sluggish consumer sales and inventory cutbacks at retailers, the Perseus Books Groups had laid off approximately 20 people and will reduce its list by about 100 titles in 2010. In a letter to employees last week, Perseus president David Steinberger said that despite earlier efforts to reduce costs, including a pay freeze, “it has become clear that we need to take additional steps now in order to be financially prudent and pursue opportunities to grow.” Those steps include sharpening the company’s publishing program, and Steinberger said that most of the 20 jobs being eliminated are in the publishing operations, with a few touching the distribution side. The layoffs represent about 3% of Perseus’ total workforce. Steinberger said that although the company will cut title output, it is not exiting any subject areas.

In addition to the layoffs, Perseus is implementing a furlough program in which employees will be asked to take some additional days off “and pay will be temporarily reduced during the summer,” the letter explained. Senior executives have also been asked to take “a more significant compensation reduction,” Steinberger wrote. The furlough program and executive pay cuts are designed to prevent further staff reductions. Steinberger said Perseus remains bullish on the long-term prospect for publishing and the company, but said the severity of the recession made it necessary to take action now to reduce expenses.