Penton Media Disallows Raises, New Workers
The economy’s not good, and the powers that be at Penton Media seem sure it’s going to grow worse. As a result, the company will not grant raises or hire new employees, and it’s looking for other places to save money, as well.
All cost-cutting measures will likely remain in place "[u]ntil we see indications of bottom-line improvement," according to a memo written by CEO John French and reprinted by FOLIO. This seems reasonable enough – from a worker’s perspective, it’s certainly preferable to layoffs – but doesn’t say much about Penton’s hope for an economic recovery.
Also, even though some of Penton’s problems aren’t necessarily recession-related, they are the sorts of things that will affect a great many companies. "This year we are facing significant increases in some of our largest, fixed operating expenses including the cost of postage and the cost of paper," wrote French.
So old media in general is getting seriously squeezed, from the sound of things.
Penton’s CEO promised to write occasional updates, and as long as he does so (and the leaker of this first memo does his or her part), we’ll try to keep you informed of the situation. In the meantime, at least the Dow is down only $16.93 so far today.