Just last week, Hachette cut pay across the board and increased work hours. Today employees got the memo below, telling them that "certain functions" in IT and finance are going to be outsourced by the end of the year. We also got a tip that Hachette is notifying freelancers that it's cutting their rates—by 3% in one case, although it may vary.
Message from Alain Lemarchand, President & CEO, Hachette Filipacchi Media U.S.
I strongly believe that one of this company's primary commitments to you, our employees, and to our customers is to implement a solid strategy that ensures our ability to compete. Therefore, I am constantly evaluating how we can improve our company's efficiencies while protecting our high standards and the quality of our products.
After reviewing extensive analysis I have come to the conclusion that outsourcing certain functions in IT and Finance is the next step for us to take. It has been a hard decision to make. A number of other publishing companies have had success with outsourcing, and we expect that this move will generate savings while making us more flexible for the future. We will partner with a highly regarded global provider with strong media and publishing experience as well as knowledge of innovative best practices.
In the coming weeks, the vendor's representatives will visit our offices in New York City to complete the analysis. Colleagues in Finance and IT may be asked to participate in informational interviews, and this is an important step to ensure that we make thoughtful and informed decisions as we proceed. The outsourcing will start in the third quarter, and the transition is expected to be completed by the end of the year.
I will keep you informed. I appreciate everyone's cooperation and support during this process because this move is very important for the company.