Home » Big Publishing » Pearson to cut 4,000 jobs as demand slows

Pearson to cut 4,000 jobs as demand slows

21 January 2016

From USA Today:

Pearson PLC, one of the world’s largest publishers of textbooks and educational tools, said Thursday it’s cutting 4,000 jobs, or about 10% of its full-time workforce, this year to cut costs, a move to combat a decline in demand for its print products and rapid changes in the global education market.

The “restructuring” initiatives, it said, will cost about $453 million in 2016, resulting in a likely drop in profit. The company, which owns Prentice Hall and nearly half of Penguin Random House, also expects to generate savings of $495 million in the next two years.

. . . .

To cope with the decline in print publishing and its education-sector customers’ rising demand for online tools, Pearson has been overhauling and simplifying its businesses in the last three years. In July, 2015, Pearson sold The Financial Times for $1.3 billion to Japanese publisher Nikkei. A month later, it unloaded a 50% stake in the Economist Group, which publishes weekly magazine The Economist, to a group of investors for about $730 million.

It merged its Penguin division with Random House to create one of the world’s largest book publishers. Selling its assets in the last three years raised about $2.54 billion of proceeds, Pearson said.

Link to the rest at USA Today and thanks to Shelly, who wonders if they should have tried coloring books, for the tip.

 

 

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10 Comments to “Pearson to cut 4,000 jobs as demand slows”

  1. Wait! Wait! I thought those silly ebook thingies had gone away and disappeared. So why has there been ‘a decline in demand for its print products’?

  2. Im sorry for the people losing their jobs. That’s a lot of families who will be affected.

    youre right, prob they could use a few dozen academic coloring books; not a bad idea actually, given the momentum of those, it seems

    • I think I saw an anatomy coloring book about 20 years ago.

      • sure, I remember those. Well , now would be the time to re-issue I suppose. although I have to say, coloring books seems to have become pet rock, chia pet; they are EVERYWHERE, grocery checkout, dollar store, drugstore.

  3. They’ve been doing coloring books for 30-plus years, and they still are. http://www.amazon.com/Anatomy-Coloring-Book-Wynn-Kapit/dp/0321832019

    More importantly, I think, is that college students can now easily buy used books over the internet. Not to mention the library-based initiatives for open source textbooks.

    While I laud attempts to save our students money and believe Pearson has many problems of its own making, this looks like another part of the continuing shift of college-related profits from actual content providers to — whom? We replace full-time teachers with minimum-wage adjuncts and full-price textbooks with open source equivalents and full-price computer programs with Office 360 and moodle, yet costs to students keep going up. Where is the money going?

    • Where is the money going?

      That’s easy, to the football team.

    • have grands in college. I buy the books. They are not open source or used. However, they are discounted greatly, often on AMZ. Some few need to be bought at ransom prices from uni bookstore. You can rent them also, often from amz. It is true the prices in some cases are coming WAY down.

      My friends at law school in e. eu, pirate all their expensive law books.

      The unis the kids go to dont have football teams. The money goes to the missions of the school, to the ever escalating costs of feeding three squares to several thousand students a day, paying decent salaries to a fine faculty, R and R for the old venerable plant that ever needs ac, vac, plumbing, recond, and much more. Many unis are installing solar, and neg huge fiber optics works that are lightning strike compared to the sludge that passes for wifi now on many a campus.

      And yes, as some unis, too many, the money does go to the top admins in amounts that are breathtaking, along with their castles and castle upkeep. yet unis are one of the most dense employers of people in non-scut jobs.

      Looking at the roster of ‘visiting’ speakers at most unis, that occurs every week, with each speaker at 10,20,30, 40+K per, there is another place the money goes.

      Most units look to me like wasteful, tottering, barely sustainable, brilliant, forward looking, backward, wildly broad and deep institutions worthy of both riotgear and veneration.

      And yes, you are right. There is a caste system now at many schools including ‘charter’ schools from elementary upward, as well as at unis, as per pay and part timing people so as not to pay bennies, and etc. That too along with the price gouge on books in the old days and also into the present, is a corruption. And ought be otherwise.

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