Tightening the Belt at Conde Nast

It was a rough week at magazine publishing house Conde Nast.  The conclusion of a three-month review by the management consulting firm McKinsey resulted in the folding of four magazines, most notably the much-celebrated Gourmet, and the laying-off of 180 employees, the New York Post reported. 

A dismal ad market has taken a huge toll on Conde Nast, which publishes the New Yorker, Vanity Fair and Wired, among many other popular magazines.  The demise of Gourmet, parenting magazine Cookie and two bridal magazines was first reported by the New York Observer last week. 

According to the Post, the McKinsey report suggested a reduction of 25%  of operating costs.  Conde Nast has been known for its extravagance, but perhaps not for too much longer.  More personnel cuts are expected.

Losses at Conde Nast are predicted to reach $200 million this year, the Post reported, and Chairman S.I. Newhouse and his family have been forced to dip into their own savings to bail the company out.

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