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McGraw-Hill Restructures Operations in Q4 2008

By: Chris Riedel

1/12/2009

The McGraw-Hill Cos. has recently announced the restructuring of a number of business operations and functions in response to the current economic climate.

Completed in the fourth quarter of 2008, the move is designed to improve business efficiencies while "positioning the company for future growth." According to McGraw-Hill, workforce reductions have played a large role in the process and are aimed at allowing the company to focus resources on more profitable business operations within the organization.

"Our diverse portfolio of businesses and ongoing cost containment efforts have helped lessen the impact of challenging economic conditions in 2008," said Harold McGraw III, chairman, president, and chief executive officer of McGraw-Hill, in a prepared statement. "The actions we are announcing today are a continuation of these efforts and will help us continue to manage the company efficiently through a difficult environment while taking all necessary steps to better serve our customers and shareholders."

According to the company, restructuring charges totaled $26.3 million, pre-tax, for the fourth quarter and include employee severance costs related to 375 positions throughout the company. Restructuring charges for all of 2008 total $73.4 million, pre-tax.


About the author: Chris Riedel is a freelance writer based in Florida. He can be reached here.