Linda K. Zecher, the former Microsoft executive who took over as CEO of Houghton Mifflin Harcourt in September, is implementing a sweeping reorganization of its education operation aimed at creating a single, unified business. The reorganization, which could cut 10% of HMH’s 3,800 positions, will eliminate duplicate functions in such areas as sales, marketing and development which will now each have one divisional leader. The trade and reference group is unaffected by the reorganization.
In her memo, Zecher said the trade & reference group will remain “as is” with president Gary Gentel reporting to her. Zecher noted that the trade & reference group “continues to bring both print and digital products to market that reinforce HMH’s heritage of excellence.” The trade & reference group’s secure spot within HMH is much different than when the Houghton Mifflin and Harcourt trade divisions were merged several years ago and, after significant downsizing, was placed up for sale.
Zecher’s reorganization of the education group will “provide better accountability with fewer senior leaders and a closer focus on our customers. We are moving away from a business unit focus and will need to eliminate duplication across the organization, and put into place a more functional structure for a company of our size,” she said in a statement.
Among the major changes already announced are the pending departure of Mike Lavelle, the current president of the Education Group, and Michael Muldowney, the one-time interim CEO, who has resigned as CFO. Eric Shuman, executive v-p and chief operating officer of the education group, has assumed the role of interim Chief Financial Officer.
In the new operation, Bethlam Forsa will be responsible for all K–12 product development, reporting to Zecher, while Rita Schaefer, Russ Carlson, Scott Bowker and Terry Nealon will also report to her while a search is conducted for a new evp of sales.
Zecher is also eliminating HMH’s Emerging Markets division and restructuring its Corporate Social Responsibility efforts, including the closure of its Washington, D.C. office.
