Boston, Massachusetts-based Houghton Mifflin Harcourt, a publisher of educational textbooks and other instructional materials, has filed an 8-K current information form with the Securities and Exchange Commission to announced that the company is making significant changes to “simplify its business model and accelerate growth.” According to the filing, this effort will include “new product development and go-to-market capabilities, as well as the streamlining of operations company-wide for greater efficiency.” Additionally, “These actions are expected to result in the elimination of 8% of HMH’s workforce, after taking into account new strategy-aligned positions that are expected to be added, and additional operating and capitalized cost reductions, including an approximately 20% reduction in previously planned content development expenditures over the next three years. These steps are intended to further simplify the Company’s business model while delivering increased value to customers, teachers and students. The workforce reductions are expected to be substantially completed by the end of 2019 and certain real estate actions targeting completion no later than 2020.”
An estimate of the reduction in force would equate to approximately 288 employees to be laid off.
According to the President and Chief Executive Officer of Houghton Mifflin Harcourt, Jack Lynch, "HMH has a simple, but compelling growth story, and today’s news has made that story even more powerful – today’s actions enable us to further leverage the strength of our portfolio to drive billings growth, simplify and strengthen our business model, reduce costs, and generate sustained and positive free cash flow. By realigning our organization, we will be able to better meet the needs of our customers while creating value for our shareholders. Our estimated third quarter and year to date 2019 results indicate impressive financial performance, reflecting continued execution of our strategic plan.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?