Reader’s Digest “rightsizes”
Readers Digest Association Inc., plans to streamline many of its international units. The Pleasantville, New York, based publisher announced that it plans to reduce overhead and reduce headcount in many of its Latin American operations. It added that Mexico has seen significant declines in revenue and profits and, hopefully, will follow a similar path like Brazil, where the company has doubled profits in the last year through careful cost cutting and aggressive pricing .
Reader's Digest Association is also planning to launch a program in Mexico involving its recently acquired Reiman publications and its Books are Fun activities. Tom Gardner, president International of Readers Digest, also noted that Readers Digest “never had a particular strong core business in Spain” because its postal system is not very reliable. Gardner added that this “has a direct impact to our business. However, we are finding that Spain is a good market for display. Therefore, our Books are Fun model has a lot of potential”.
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