Future Network Closes Magazines and Cuts Jobs

Posted on February 22, 2001

The Future Network plc, an international publisher of specialist magazines and the parent company of U.S. based Imagine Media, has announced job cuts and magazine closures. The company will close or sell 20 loss-making magazines, out of a total portfolio of 134 titles, and is reducing its Internet development costs. The company also announced that it has appointed Morgan Stanley Dean Witter to review strategic alternatives for the next stage of the development of its US-based magazine, Business 2.0, including a possible sale or joint venture.

Six magazines in the US were closed, including music magazine Revolution and the US edition of T3. Six smaller titles in the UK were closed. The actions will result in a reduction across the group of approximately 350 jobs out of a current workforce of approximately 2,000 employees, including approximately 75 staff in the Internet operations.

Additionally, Morgan Stanley Dean Witter has been appointed to explore options for the next stage of development of Business 2.0, including possible sale or joint venture. Business 2.0 has enjoyed extraordinary success during the Internet boom, rising to a bi-weekly US circulation of 350,000 and the launch of international editions in the UK, Germany, Italy and elsewhere.

Commenting on the changes, Greg Ingham, CEO of The Future Network Plc, said: ``Following a prolonged period of growth, Future has recently faced much tougher market conditions. In response, we are refocusing our activities around the high-passion specialist consumer audiences we have built the business on. Future remains the world leader in computer games magazines and we are well positioned to capitalise on the continued roll-out of Sony's PlayStation2 and the worldwide launch of The Official Xbox Magazine beginning in the US later this year.''