McGraw-Hill to cut 550 jobs in education business
New York—McGraw-Hill Cos. has announced plans to cut 550 jobs, or 10% of its workforce, at McGraw-Hill Education. That move was among a number of initiatives McGraw-Hill unveiled Wednesday in an update on its plan, announced in September, to separate into two independent companies: McGraw-Hill Financial and McGraw-Hill Education.
McGraw-Hill said the job cuts were part of an effort to achieve $100 million in annual cost savings. The company, which bought back $1 billion in stock this year, also announced a new $500 million accelerated share repurchase program.
In a statement, McGraw-Hill Chairman-President-CEO Harold “Terry” McGraw III was optimistic about McGraw-Hill Financial, the company he will head after the split into two companies: “McGraw-Hill Financial will comprise fast-growing and highly profitable global brands such as S&P Ratings, S&P Indices, Platts and S&P Capital IQ, creating the potential for double-digit growth, strong cash flow and profit margins in excess of 30%.”
McGraw-Hill Construction and the Aviation Week group will be part of McGraw-Hill Financial.