Reader's Digest Reorganizes its U.S. Book Business

Posted on July 27, 2001

The Reader's Digest Association, Inc. reported that in the second half of its fiscal year, most of the company's U.S. core businesses had sharp reversals. The area most affected was U.S. Books and Home Entertainment (BHE), notably single-sales products. This contributed to a decision to restructure the U.S. BHE business, which will include an unspecified number of layoffs. At the same time, an industry-wide advertising slump affected all of the company's U.S. magazines, including Reader's Digest and especially the smaller special interest publications.

The company announced several moves to reduce costs and improve profitability:

``The most significant of these moves, in the long term, is the transformation of our U.S. BHE business,'' said Thomas O. Ryder, Reader's Digest Chairman and CEO. ``Its new organization is designed to reduce risk, to respond more quickly to opportunities and to operate more profitably.''

The Reader's Digest Association, Inc., is a global publisher and direct marketer. Products include Reader's Digest, the most widely read magazine in the world. Revenues were $2.6 billion for the fiscal year ended June 30, 2000. Global headquarters are located at Pleasantville, New York.



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