McGraw-Hill Inc., a diversified publishing group, said today that it is cutting about 6% of its work force and will take a $220-million charge against earnings in the fourth quarter in a bid to cut costs and improve profits.
The New York-based company said it will cut 1,000 jobs. The company currently employs about 16,250 people.
McGraw-Hill said $145 million of the write-off will cover the shuttering of its general books unit and streamlining its Data Resources operations.
The other $75 million in charges will be used for a reserve for severance payments associated with the staff reductions and other items.
The market reacted negatively to the company's announcement, driving its shares down $1.50 to $62 on the New York Stock Exchange.
The company said the one-time charges will lower earnings for 1989. But for 1990, it said it expects earnings per share to rise from $3.50 a share to $4 a share, excluding non-recurring gains.
In 1988, the company earned $167 million, or $3.45 a share, on sales of $1.82 billion.