Time Warning: Q1 Results Show It's Expensive to Pink-Slip Workforce

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An 11 percent drop in subscription revenue and an overall 5 percent decline in Q1 earnings to $737 million compared to First Quarter 2012 figures was a one-two punch of bad news for media giant Time Warner, All Things Digital (allthingsd.com) reported this week.

Time, Inc. sustained a $9 million loss for the quarter, owing to the $53 million expended to slash its 8,000-member workforce by 6 percent (see "TUOL" post 3/7/13). Time Warner, which owns nearly a quarter of the nation's magazines, plans to jettison its Time, Inc. magazine division into a separate company and shift its emphasis to its cable tv and film divisions.