MCGRAW-HILL TO TERMINATE 611 JOBS
January 10th 2008 02:44
McGraw-Hill, owner of the hard-hit credit-rating firm Standard & Poor's and publisher of Business Week and textbooks, will cut 611 jobs, or 3 percent of its staff.
The company is another casualty of the recent downturn in the mortgage market.
S&P and rivals were forced to lower ratings on thousands of mortgage-related bonds, further worrying skittish investors and prompting investigations by federal and state regulators into why the rating firms were too optimistic with their initial ratings on many mortgage bonds.
Meanwhile, an update from Reuters said that the company may cut even more staff than the 611 originally quoted.
"Hopefully, this does it, but we're prepared to do a third tier if necessary," chief executive Harold McGraw told investors later in the day at a Citigroup conference in Phoenix.
The information and media unit, which includes Business Week, Aviation Week and J.D. Power & Associates, accounts for 114 of the job cuts and a $US6.7 million charge.
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