The publishing company McGraw-Hill Cos., which owns the Standard & Poor’s corporate-credit-rating firm, says it will cut 550 jobs at its education arm and freeze all employees’ pensions next year as part of a plan to split into two companies.
In the education business, McGraw-Hill said last week, it will cut 20 percent of executive positions and 10 percent of the workforce overall, making most of the reductions by the end of this year.
The company said in September that it will split into McGraw-Hill Financial and McGraw-Hill Education. The move follows a yearlong review of the company’s business.
The job cuts in the education business come as management looks to move toward a subscription-based model. New York City-based McGraw-Hill said it plans to make further investments in its education business to create digital products and services.
A version of this article appeared in the December 15, 2011 edition of Education Week as McGraw-Hill to Cut 550 Jobs in Ed. Unit