Penton Media has just announced its belt-tightening plans as it weathers the current economic storm. The good news is that it doesn’t look like any of its 1,600 employees is going to find a pink slip in the next pay envelope. However, it’s hard to put a positive spin on a hiring and salary freeze, and the company has announced that its revenue projections are going to be revised downward.
Penton claims to be “the largest independent
business-to-business media company in the
In other words, this is one of the bigger fish that is having trouble. One of its saving graces is this array of different products and different markets. The company said, “It’s not like we’re seeing everything across the board down in revenues—some areas are performing well.” That’s the entire idea of diversification. The trouble is when you diversify beyond the areas you know how to do, and Penton doesn’t appear to have done that. Instead, it is facing the same struggle for revenue the rest of the industry, and the economy for that matter, faces.
Not all is doom and gloom, though, because the hiring freeze is more of a chill. The helpdesk is going to keep staffing levels up, and Penton’s New Media and Buyers Guide groups may get some “key hires,” which is a clue that these are either the money making parts of the company, or the top dogs at Penton think they could get into the black soon – with privately help companies like Penton, it’s always hard to be sure. Finally, there is talk of hiring a Chief Financial Officer, and that signals two things. First, it means more whip cracking from the accounting department. Second, it might mean there’s a chance for an Initial Public Offering when market conditions improve. You always want a CFO to get the books in order before you do that.
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