Meredith plans to add 41 jobs, overhaul headquarters
Meredith Corp. has applied for state aid for a headquarters remodeling that includes the addition of 41 jobs.
The $5 million remodel comes in part to make room for employees who will be moved from expensive Manhattan offices in New York to the Des Moines office complex in Western Gateway Park.
The Iowa Economic Development Authority board is expected to vote Friday on a $460,000 incentive package made up of $280,000 in investment tax credits, $150,000 in sales, service and use taxes refunds and a $30,000 research activities tax credit, according to an IEDA staff report to the board.
The $5 million remodel comes in part to make room for employees who will be moved from expensive Manhattan offices in New York to the Des Moines office complex in Western Gateway Park.
The Iowa Economic Development Authority board is expected to vote Friday on a $460,000 incentive package made up of $280,000 in investment tax credits, $150,000 in sales, service and use taxes refunds and a $30,000 research activities tax credit, according to an IEDA staff report to the board.
“We plan to create a number of positions here in Des Moines to accommodate our new size and scale, and move positions that were operating at higher cost,” Meredith spokesman Art Slusark said. “We can get just as good of talent (in Greater Des Moines) at a lower operating cost.”
Slusark said duplicate operations, such as public relations, corporate finance, consumer marketing and legal will be consolidated in Des Moines at the expense of the same positions in Lower Manhattan, for example.
As Meredith cuts jobs elsewhere, it will attempt to accommodate some workers in Des Moines.
Slusark said the 41 positions announced as part of the remodel is a fluid number. “We figure it will be more than that,” he said.
Meredith plans to spend $5 million on the remodel, $600,000 on computer hardware, $10 million on software, $3 million on furniture and fixtures, and $2 million on research and development, according to the IEDA report.
Unlike many applications for state development assistance, the city will not be asked for a financial contribution to the project because it will not result in an increased property tax assessment, said Naomi Hamlett, an economic development coordinator for the city. The City Council is expected to vote April 9 on a letter of support for the project.
The news came a day after Meredith said it plans to sell Time, Sports Illustrated, Fortune and Money in the aftermath of its $2.8 billion deal to buy Time Inc. Meredith considered the news-heavy publication out of its mainstream portfolio of lifestyle publications such as Better Homes and Gardens, Family Circle and Allrecipes.
Meredith announced that 1,000 more positions will be cut over the next 10 months, in addition to the 200 that already were eliminated after the purchase.
The cuts are part of Meredith’s plan to reach $400 million to $500 million in savings by eliminating duplication.
Want to know more about the spinoffs? Here’s a roundup of coverage around the country.
New York Times: Meredith says it intends to sell Time, Sports Illustrated, Fortune and Money
Des Moines Register: Meredith will lay off 1,200 employees
CNBC: Meredith will explore selling Time and Sports Illustrated magazines as it plans layoffs
Read Joe Gardyasz’s interview (Insider) with Meredith’s Steve Lacy about the evolution of the company.
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