As it moves forward in spinning off McGraw-Hill Education into a separate company, the McGraw-Hill Cos. announced late Wednesday plans to cut 10% of MHE’s workforce—about 550 positions—and reduce its executive ranks by 20%. The downsizing is expected to be largely completed by the end of the year. MHC said the job cuts are part of its strategy to make MHE “a flatter and more agile organization.” As part of the restructuring, MHE will move towards a “digital first” publishing model and move more of its business towards a subscription-based model.

Along with cutting the workforce, MHC said MHE “will invest further in adaptive, one-on-one, customized products and learning solutions that improve student and instructor outcomes – position[ing] McGraw-Hill Education as their preferred partner.” MHE will also grow education services and add new capabilities to international operations in order to “offer critical college and career readiness solutions at the institution, company and country level.”

MHE has had a difficult 2011 with earnings for first nine months of the year down 19%, to $281.4 million on an 8.3% decline in revenue, to $1.78 billion.