HarperCollins cuts 5% of its workforce in North America
HarperCollins already laid off several employees last fall.
Publishing company HarperCollins plans to cut 5% of its North American workforce by the end of the current fiscal year, which ends June 30. Last Monday, January 30 some jobs were already eliminated. It should be noted that the company laid off several workers last fall.
In a statement to employees, HarperCollins CEO, Brian Murray wrote that the sales growth the industry and HarperCollins experienced during the pandemic has «slowed significantly of late.» He pointed to problems at Amazon as the main factor behind the decline in sales and earnings in the quarter that ended Sept. 30 but noted that an expected rebound has not occurred in the current quarter. «We must pause to recognize the depth of the core issues we currently face,» he wrote, in what he described as «what he called a critical juncture for the organization.»
In addition to lagging demand, Murray pointed to «unprecedented supply chain and inflationary pressures caused by the pandemic, including rising paper, manufacturing, labor and distribution costs.» While HC has «adjusted prices and reduced non-essential expenses,» Murray said, «more needs to be done.»
HarperCollins has a worldwide workforce of about 4,000, with its largest operations located in the U.S. and Canada. News of the layoffs comes a few days after the publisher said it had agreed to work with a mediator in an attempt to end the ongoing strike by some 240 union members.