Job losses at HarperCollins US due to 'continued cost pressures'

HarperCollins US has revealed “a small number” of people have lost their jobs at the publisher due to “continued cost pressures”. 

A spokesperson for the US side of the company told The Bookseller: “The business is facing continued cost pressures, including price increases related to printing, production, freight and distribution, and we are taking decisive steps to operate as efficiently as possible. As part of this process, we have made some difficult decisions and a small number of positions have been eliminated as teams restructure.” 

The Bookseller understands this only applies to the US business. HarperCollins global revenues grew by 10% this financial year, according to figures from parent firm News Corp. Full-year revenues increased to $2.2bn (£1.97bn) from $2bn (£1.8bn) the previous year. Segment earnings before interest, taxes, depreciation and amortisation (EBITDA) nudged up to $306m (£273m) from $303m (£271m) in 2021.

However, the US book market as a whole has seen declines this year, with unit sales of books dropping 6.6% in the first six months of 2022, compared to the same period in 2021. NPD BookScan figures showed all the major categories except adult fiction had declines during that period, with a large drop coming in adult non-fiction, where print sales fell 10.3%.

Publishers Lunch reported that HarperCollins c.e.o. Brian Murray told US staff last week the company would pause hiring. He said in a memo: “For the past several years we have been operating in a state of constant change–shifting resources as necessary to manage economic and consumer behavioural savings. With continued cost pressures across all areas of the supply chain, and ongoing uncertainty through the remainder of the fiscal year, we need to control costs and operate as efficiently as possible. 

“We have been working diligently to address our procurement and fulfilment hurdles as well as reduce non-essential expenses and travel, but further action is required. We will be pausing on the majority of hiring for open positions and leaders across the company have implemented changes to some team structures. Unfortunately, this has meant the elimination of a small number of positions, so I want to thank our departing colleagues for their contributions. Balancing our future success with the present business environment is never an easy task, but it is especially difficult in a climate with so much uncertainty.” 

Publishers Lunch said an estimated 12 people have been let go across departments in both the children’s and adult divisions. 

In July, unionised employees at HarperCollins US went on strike demanding better pay and benefits.