WASHINGTON (dpa-AFX) - McGraw-Hill Companies (MHP) provided an update on its Growth and Value Plan, which includes the creation of two independent companies: the newly named McGraw-Hill Financial, and McGraw-Hill Education.
The company stated that McGraw-Hill Financial will focus on content and analytics in global financial markets. McGraw-Hill Education will focus on education services and digital learning.
The company stated that McGraw-Hill Education is reducing its executive ranks by approximately 20% and its workforce by approximately 10%, or about 550 positions, to create a flatter and more agile organization. McGraw-Hill Education will continue to reinvest resources into the creation of education services and digital products and solutions. The workforce reductions are expected to be substantially completed by the end of the fourth quarter, with some actions expected to close in the first half of 2012.
McGraw-Hill noted that it is also making changes to its pension program in order to better align its retirement plans with market practice. As of April 1, 2012, the Corporation will freeze its defined-benefit pension plan and focus its retirement program on market-competitive offerings.
The company now expects savings, which includes today's $50 million in corporate-wide cost reduction initiatives, to exceed previously announced $100-Million target.
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