Reader’s Digest Association’s U.S. work force is taking another hit.
On the heels of a disclosure in June that 250 jobs would be eliminated, the publishing and marketing concern said Wednesday that it will be cutting another 200 jobs.
Such moves will reduce the association’s work force in this country to an estimated 2,050 by no later than the June 30 end of the fiscal year.
Also forcing the downsizing is a decline in the firm’s revenues, operating profits and net income, minus 6 percent, 23 percent and 7 percent, respectively, for its latest quarter ended Sept. 30.
The cuts announced in June were primarily in the customer-service and fulfillment areas. About 100 of those 250 jobs have been eliminated. The latest round involves jobs across the board, including magazine publishing and direct marketing of books and entertainment products.
One job has been cut from a 19-person staff in Chicago that works on most phases of Digest’s businesses, including selling the domestic edition.
Separately, the Chicago ad sales staff of Reader’s Digest now has responsibility for selling sister publication New Choices, a special-interest magazine for the senior citizen market, in parts of its Midwest territory. Globe Media Chicago, which previously had been the publisher’s representative for New Choices (formerly 50 Plus) in the Midwest, recently was terminated.
In another cost-efficiency move only a few months ago, Reader’s Digest Association consolidated the Chicago ad sales staffs of its special-interest magazines into space of Reader’s Digest unit at 111 E. Wacker Drive. Moving from other locations were American Health, Travel Holiday and Family Handyman which, like New Choices, were acquisitions.
Dean’s agencies in catbird seat?
Look for Dean Foods to substantially hike advertising spending behind the Birds Eye frozen vegetables line it’s acquiring. This Birds Eye purchase from Kraft General Foods won’t be completed until near year-end. Perhaps by early 1994, Dean will have a better reading on what its promotional plans will be on behalf of a brand that had very meager support at KGF, though Birds Eye business has been decent. Sales were nearly $300 million for the last 12 months. For the first half of 1993, Birds Eye was supported by a paltry $2.45 million in media, according to Leading National Advertisers. There was zero advertising in 1992, and the budget was $4.2 million in 1991. Chairman Howard Dean fully expects the budget behind Birds Eye to be increased, the primary thrust being regional, in areas where Birds Eye has performed well, rather than national. A decision on who will pick up this Birds Eye business isn’t likely for some time. Contenders would appear to be Dean’s current roster of agencies, including CME KHBB Advertising Chicago on Dean’s Larsen Co. unit, a Green Bay, Wis., marketer of the Freshlike canned and frozen vegetables; Tatham Euro RSCG, with responsibilities for a number of Dean’s dairy products; and Cramer-Krasselt Chicago, which works for two Dean dairies in Florida. Then there’s always a possibility that Dean may decide to pick an outsider.
– Former Chicago adman David Lauer returned here as vice president of communications and image, a newly created post, at Budget Rent a Car, the Lisle-based firm. Lauer, 53, heads up advertising and communications programs in this post. David Sparks, who had been Budget’s senior VP of marketing and sales, this week joined promotional-marketing firm Robinson & Maites as a VP. Budget hasn’t filled that post yet, but one of Sparks’ responsibilities included advertising. Lauer will report to William N. Plamondon, president and CEO of Budget. Lauer is no stranger to Budget, having supervised the account when it was a client of D’Arcy, Masius, Benton & Bowles in the late 1970s and early 1980s. Lauer has worked for several other ad agencies in Chicago; his work on the client side has included positions at Amoco Fabrics and Fibers Co. in Atlanta and Kohler Co. in Wisconsin.
On the move: Tim Burns appointed VP-marketing for ERA Real Estate, working out of its regional office in Rolling Meadows, with responsibility for Illinois and Indiana. . . . Cynthia V. McCann, Leo Burnett Co.’s Chicago-based regional finance director for its Latin American network of offices, elected a VP. . . . Bohbot Communications promoted Steven J. Kuperberg, recently a VP with its San Francisco office, to senior VP-general manager of its Chicago office. . . . Susan Goldman promoted to a senior VP at Golin/Harris Communications. . . . Christine Pinella and Ron Schulman joined Jack Levy & Associates as senior account executives.
Strictly Personal: Birthday greetings to Jeanne Sowa, Jerry Vance, Louie Abbeduto, Ann Miller and Elizabeth H. Lavezzorio.
Brian Pussilano, VP and Midwest ad sales manager of Spanish TV network Univision, joined Montgomery Ward as director of special marketing. Pussilano reports to Gene McCaffery, executive VP-marketing. Wards is making a more concerted effort in the Hispanic market; Pussilano will be involved in such a program.
Appointment: Pearle Vision, a Dallas-based unit of Grand Met, to Golin/Harris Communications for marketing PR and corporate communications.
