S&P Parent McGraw Hill Cuts 395 Jobs, Takes Charge
McGraw-Hill, which owns ratings agency Standard & Poor's and news magazine BusinessWeek, said Tuesday it will cut 395 jobs and take a $23.7 million charge to pay for the layoffs.
McGraw-Hill said 246 jobs will be eliminated in its financial services unit and 149 will be cut in the education segment, which will cost the 120-year-old publishing firm $14.8 million, or 5 cents a share, after taxes on its second-quarter earnings.
The news comes as many financial firms suffer in the wake of last summer's credit crisis. It also underscores economists' forecasts that more job losses are likely as the US economy slows.
Despite the charge, McGraw-Hill is sticking by its 2008 earnings guidance of $2.65 to $2.75 per share. The company said its 2008 forecast excludes the restructuring charge and associated benefits.