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Condé Nast issues shakeup amid cost cutting

By Don-Alvin Adegeest

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Business

London - Condé Nast, the global consumer publishing scion and publisher of fashion magazines W, Vogue, Glamour and Vanity Fair, is under pressure to increase revenue and has undertaken drastic measures to improve its bottom line.

The company announced it appointed former AOL executive Jim Norton for the new role of chief business officer and president of revenue, while at the same time letting go of two of its key employees, Edward Menischeschi, president of Conde Nast Media Group and Jill Bright, chief marketing officer, who have exited the organisation.

The departures of Menicheschi and Bright, who between them have 55 years of experience, will make way for a new vision, in the wake of magazines facing challenging times. Steep falls in advertising revenue and competing digital channels have taken the readership formerly attributed to magazines, and publishers must find novel ways to engage and secure an audience.

Publishing companies have leaner budgets to contend with

Year on year publishers have leaner budgets to juggle to echo the slimming dimensions of their magazines, reported WWD, and Condé Nast CEO Robert Sauerberg is reportedly under pressure from the company’s owners, the Newhouse family, to turn things around. That may entail cutting jobs and perhaps closing smaller magazine titles, as it had last November when it cancelled its men's lifestyle magazine Details.

Norton’s appointment is clearly a step toward streamlining the Condé Nast organisation In order to sell digital and video advertising. Part of that streamlining includes a clearer reporting structure.

“By organizing the company’s numerous revenue operations under Jim, Condé Nast will be well-positioned to quickly respond to the dynamic marketplace and our clients’ needs,” Sauerberg said Monday. “Jim brings a great understanding of the complexities of running a massive sales enterprise and the importance of data-led sales products to maximize our effectiveness. His digital and video media expertise, vast relationships with top global advertisers and commitment to business innovation will be instrumental in our continued transformation into a next-generation multimedia company.”

According to WWD, there has been speculation that a reorganization could entail a reduction in publishing staff and a regrouping of executives by sales categories such as lifestyle or fashion.

Photo credit: Conde Nast portfolio

Conde Nast