PRH US latest firm to target older workers

Penguin Random House US has reportedly become the latest American publisher to target older workers in redundancy offers.

Following buyout offers from Hachette Book Group in March (to employees over 50) and HarperCollins (to those with more than 25 years of service), PRH US has launched a similar scheme according to Publishers Lunch. 

The internal voluntary separation offer (VSO), introduced internally, was described as a benefit to “support our colleagues professional and personal lives” and “responding to the needs and desires of our long-tenured employees.”

It is available to employees who will be 60 or older as of the end of the year, and have 15 years of service or more. Eligible employees have until 20th June to take up take the offer, and those who do so will leave the company on 1st September.

The publisher said it was mailing “comprehensive” and “personalised” information about the packages to eligible people. They noted: “We appreciate that eligible colleagues may have questions while considering this offering, and we will fully support them throughout the decision-making process.”

PRH US told Publishers Lunch: “The VSO is an entirely voluntary offering and there are no set numbers expected. It is a programme that can address requests and needs of long-tenured employees as well as potentially reduce costs for PRH. Separate and apart from the VSO, the economic reality of our business has changed due to strong headwinds, and we must always continue to explore ways to achieve sustainable savings and efficiencies, alongside new growth strategies and any changes could, as ever, potentially affect some of our programmes and people.”

The news comes a few months after Penguin Random House US’ senior management reshuffle which saw former c.e.o. Markus Dohle step down. In November, PRH’s attempts to purchase Simon & Schuster (S&S) fell through, as the US government blocked the merger, leaving PRH liable for a $200m termination fee to S&S owner Paramount.

Meanwhile the voluntary offers from HarperCollins and Hachette Book Group came after a dip in book sales in the US, following the pandemic books boom. There is no suggestion that UK publishers will follow suit – age is a protected characteristic under the The Equality Act 2010 – but it cast a spotlight on how older employees in publishing are treated on both sides of the Atlantic.

The Bookseller has contacted PRH US and UK for comment. PRH UK confirmed the scheme was for US workers only.