Newsweek to Offer Early Retirement

Newsweek magazine, faced with a shrinking advertising base, will offer early retirement to 100 editorial and non-editorial employees, or about 10% of its work force.

The weekly publication, owned by Washington Post Co., characterized the offer as a cost-saving step.

The magazine’s revenues were up 1% during the first half of 1988, although ad pages in its domestic edition fell 6%, to 1,182 pages, during that period against the same period a year ago, according to the Publisher’s Information Bureau.

“Obviously, our costs have gone up substantially, primarily postage and paper, and the advertising environment has become increasingly competitive,” said Diana Pearson, a spokeswoman for the magazine.

“It forces us to operate in as lean and smart a way as we can while maintaining our professionalism and editorial quality.”

Pearson said the magazine, second in circulation among news weeklies to Time, would not estimate its potential savings from the program because it did not know how many workers would accept the voluntary offer.

Employees who have been at the magazine for 25 years or more, or those who are 55 or older with 10 years of experience, are eligible for a package that includes enhanced pension benefits and extended medical coverage.