McGraw Hill
Unhappy holidays from McGraw-Hill
December 8, 2011: 4:32 PM ET
The McGraw-Hill Companies (MHP) today released an update on its "growth and value plan." Sounds positive, until you actually read the details.
The company, which in September announced plans to spin off its education unit, said that it will lay off approximately 10% of its workforce. That works out to 550 pink slips, with most to occur by year-end. Twenty percent of the cuts will be within McGraw-Hill's executive ranks.
The company also said that it would freeze its defined benefit pension plan next April, presumably converting into a defined contribution plan.
All of this is expected to save McGraw-Hill around $50 million in annual cost savings. And that doesn't even include cuts that the company may include in its "future restructuring updates," or the impact of increased use of outsourcing.
That's probably the "value" part of the company's headline, but it doesn't exactly scream "growth."
Sign up for my daily email newsletter on deals and deal-makers: GetTermSheet.com
-
The spinoff boom is a boon for this economy
Job creation, innovation, and shareholder value: Who said breaking up is hard to do?
FORTUNE -- Not too long ago the prevailing corporate buzzword was "synergy." Combine one business with another, eliminate redundancies, and watch the profits accumulate. Not all mergers would succeed, of course, but two heads would usually prove better than one, particularly at companies where revenue and innovation had stagnated.
In 2011, however, a growing number of large companies MORE
Dan Primack - Oct 21, 2011 5:00 AM ETPosted in: banks, ConocoPh, Expedia, HP, ipos, kraft, McGraw Hill, Mergers & Acquisitions, Sara Lee, spinoffs -
SEC takes a swipe at S&P
Regulators may punish the rating agency for its role in a 2007 CDO deal.
FORTUNE -- The Securities and Exchange Commission may take formal action against the credit rating agency Standard & Poor's, the company said in a statement Monday.
McGraw-Hill, the parent company of S&P, received a so-called Wells Notice from the SEC last Thursday, which said that the commission could fine the company for alleged securities violations related to a MORE
Katie Benner - Sep 26, 2011 10:47 AM ET -
Meet the man who will lead S&P
An executive who has tackled some huge problems at Citigroup prepares to lead S&P through rocky times. He faces tough times, an uncertain future and the possibility of a big payday.
FORTUNE -- When Doug Peterson becomes president of Standard & Poor's this September, he'll inherit a series of headaches that few would envy. S&P is under fire from politicians for downgrading the United States from AAA to AA+. The Department MORE
Katie Benner - Aug 24, 2011 6:17 AM ET -
Activists put pressure on McGraw-Hill
Is the world's most powerful company about to get broken up?
No, I'm not talking about Wal-Mart. Or Exxon Mobile. Or Google.
This is about McGraw-Hill (MHP), the information services company whose units include credit rating agency Standard & Poor's. You know, the same S&P that may or may not be fixing to downgrade America's credit rating from AAA to AA. Or the same S&P that did stamp AAA on shoddy sub-prime MORE
Dan Primack - Aug 2, 2011 2:27 PM ET
