RODALE ELECTS TO CUT 111 STAFFERS

By KEITH J. KELLY

Posted: 3:55 am
November 4, 2008

Rodale, the publisher of Men's Health and the best-selling book series "Eat This, Not That," said it will eliminate 111 jobs, or 10 percent of its workforce, in the biggest staff cutback in the company's history.

The job cuts come after the privately held company sought unsuccessfully to find a strategic partner to help expand its business and invest in Internet properties.

Rodale hired JPMorgan Chase to assist in the quest, but its efforts faltered as the credit markets began tightening.

Rodale, whose annual revenue is estimated to be $600 million a year, said it will eliminate or consolidate positions in several divisions, including operations, information technology, customer service and some publishing departments. The company already had begun slowly pruning high-priced executives from its roster.

"The current pace of market change compels us to reallocate our resources swiftly and manage our costs down," said Rodale President and CEO Steven Murphy.

Through the first nine months of the year, Rodale reported its total ad pages had dropped 3 percent to 3,833 pages - a less severe decline than what other major publishers are reporting.

Condé Nast, which last week announced a 5 percent reduction in staff, is down 9.1 percent in ad pages. Time Inc., which is trying to eliminate about 6 percent of its workforce, is down 9.3 percent.

Many publishers are looking at an even bleaker 2009 advertising picture.

Rodale was launched in 1942 when founder J.I. Rodale launched Organic Gardening. His son Bob Rodale took over until 1980, when he was killed in an auto accident.

Maria Rodale, the current chairman, is the only family member still actively involved in the company.