McGraw Hill Job Cuts

MGH announced yesterday that it will cut 3% of their workforce (about 600 jobs) and take a charge for the upcoming quarter. From Reuters:

The cuts will result in a $43.7 million pretax restructuring charge and reduce fourth-quarter earnings by $27.3 million after taxes, or 8 cents per share, McGraw said.
"For 2007, we still expect double-digit earnings per share growth" excluding the restructuring costs and other charges, McGraw said.

Also of note, MGH shares have fallen 39% over the past 12 mths in part because of what some have seen as faulty advice from its S&P unit with respect to the sub-prime banking crisis. While McGraw attributed the restructuring to the financial market issues the largest cuts look to be in their education unit. Given the amounts being invested by the other large players this seems counter intuitive.

NYTimes