Today is the day Vogue magazine will post its September ad pages and that its publishing company, Conde Nast, will be releasing ad page counts for all of its various magazines. And though it has been recently reported that the Conde Nast has suffered significant cuts in ad pages for the fall, that is not the reason the magazines are expected to be nervous today. The real reason is that today also marks the entrance of management consulting firm McKinsey &Co. into the Conde Nast bubble. The consulting firm has been hired to perform a "sweeping overhaul," of the company according to The New York Post. McKinsey was hired late last week by CEO Charles Townsend to help the publishers of titles Vogue, Details and Vanity Fair
figure out a way to weather the current economic crisis, which has hit
Condé Nast harder than any other publisher. Those titles in particular have weathered the most losses from their typical $2 billion annual revenue, perhaps in part due to to frivolous spending like a personal hair and makeup team for Vogue's editor-in-chief Anna Wintour.
But Wintour is not the only one who has to worry about budget cuts. Condé Nast has cut jobs across the board by 5 percent and has shuttered multiple
magazines over the past several months — most recently its business
magazine Condé Nast Portfolio. Many employees are worried that McKinsey will inspire more cost cutting, layoffs, and magazine closings. "Everyone is walking around like they are going to be fired tomorrow," said one insider. And if the company's current employee base does survive, they also have to reason to worry about a complete upheaval of operations which may very well take place throughout McKinsey's reorganization plan. An industry veteran noted, "When they are done there is going to be a whole new Condé Nast."
Hopefully, the magazine will not make too many long-term changes to its signature luxe lifestyle. Perhaps the weeding out of certain unnecessary things (ahem, Anna, give up the weekly bob trim) will provide enough savings to sustain jobs and maintain a certain level of the company's extravagant image.
Article Source: The New York Post
Photo Source: fashionindie