Consumer Reports, the magazine devoted to protecting consumers with its product reviews, faces its first round of layoffs ever unless employees agree to forgo raises and make other concessions that will save $1.8 million.
Up to 21 writers, editors, researchers and scientists who test products are among those targeted for layoffs unless unionized workers of the New York Newspaper Guild agree by July 17 to management’s demand for givebacks. The main sticking point is a 3 percent raise due this year, costing about $1 million.
The magazine — perennially profitable from its 9 million subscribers for print and online products — expects an operating loss next year due to the recession’s erosion of its customer base.
The magazine, owned by the not-for-profit Consumers Union, doesn’t accept advertising and isn’t dependent on shrinking ad dollars.
Non-union employees already forfeited raises and lost their guaranteed pensions. CR said it wants “shared sacrifices” from its 350 unionized workers.
The Guild’s outside auditor reviewed the magazine’s books and said that CR, profitable in fiscal year 2009, could stay afloat without having to make such drastic cuts.