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Random House Restructuring Effort Smaller Than Rumored

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November 16 – November 23, 2006 Edition

Random House

Restructuring Effort

Smaller Than Rumored

NEW YORK, NY/11/13/06—Rumors that large layoffs have taken place within Random House publishing sales force have been called "inaccurate" by Stuart Applebaum, executive vice president of communications. Mr. Applebaum confirmed that only a "small fraction" of the overall sales group, numbered several hundred, has been cut, and he indicated that RH has as its goal to complete the move by the end of this year.

Some online trade news sources were reporting that as many as 30 positions were to be cut. But Applebaum said that a few sales positions have been eliminated and some reps are expanding their duties to cover reps who are retiring. Applebaum said the initiative was designed to keep up with the ever-changing book market. He said the restructuring will allow Random House to provide "the same level of sales attention and follow-through and marketing support to which our accounts have long been accustomed."

In September 2006, Random House, owned by Bertlesmann, had revenues of €859 million and operating EBIT of €48 million. The publisher is the world’s largest trade book publishing group. The publishing unit managed to increase its first-half revenues, despite a book market that continues flat, and kept operating profits stable. The U.S. unit had more #1 New York Times bestsellers in the first six months of 2006—twenty-four—than in all of of 2005.