McGraw-Hill Restructures Operations, Reduces Staff
The McGraw-Hill Companies announced in early January that it had restructured parts of its business during the final quarter of 2005, including the elimination of approximately 500 positions. The corporation—a leading global information services provider—released a statement indicating that the restructuring is the result of an effort to enhance its long-term growth prospects.
"We are focused on extending the record of consistent growth achieved over the past decade, and the restructuring activities we completed in the fourth quarter have strengthened key capabilities, lowered costs and allowed us to direct resources to areas with the greatest potential for continued growth in the years ahead," said Harold McGraw III, chairman, president and chief executive officer of The McGraw-Hill Companies, in a statement released Jan. 5.
The changes will cost the company $23.2 million (pre-tax), including employee severance packages.
"Though it is difficult to reduce staff, the prudent steps we have taken allow us to sharpen our focus entering 2006 and the years ahead," McGraw said.
The McGraw-Hill Companies also reaffirmed double-digit growth in earnings per share from continuing operations in 2005.