Black Wednesday

Ouch. I don't mean to be the bearer of bad news, but today was a really, REALLY lousy day for all of us who work in publishing. Today...

-Simon & Schuster cut 35 people (2% of its workforce).

-Thomas Nelson cut 54 people (10% of its workforce).

-Random House axed some of its top people and announced it is restructuring -- and will disband the Doubleday Publishing Group.

-It has been reported that Houghton Mifflin Harcourt has let go of several employees (the company doesn't comment on personnel matters). Becky Saletan, the publisher, has been let go.

-And Borders' stock price fell under one dollar. That's a very bad thing -- if their stock price stays under $1 for ninety days, they have to do a consolidation of stock (the  opposite of a stock split).

This qualifies as a really crappy day. And yes, most of it traces back to the lousy economy.

Yeesh. The one bit of good news? Retail sales on "Black Friday" looked better than expected, proving that books are still recession-resistant. Today's news reveals that they are certainly not "recession proof." But people are still buying books, so that's something to take to heart.

UPDATE: While there was some other news that wasn't too encouraging (Penguin has put a freeze on any raises this year), there was also some good news for everyone... Books sales in November rose 6% over this time last year, according to a story by Jim Milliot on PW Daily. He also noted that children's book sales rose more than 33% in that period (!), and YA sales were also up (thank you Stephenie Meyer!). When times are hard, people still read books.

Comments

[Cheryl]

Books make great Christmas presents. Maybe if we all give some as gifts as well as request some on our own Christmas lists, we can make a little difference...

[Kim Kasch]

I went out today and bought myself a little Christmas present - early. Of course you guessed it: a book.

California Jerk by Jonathan Friesen.

Just doing my own tiny part to save the planet - well at least the publishing part.

:)

[Mary]

Gee -- and I thought I was the only one having a bad day. It's really sad to hear about all the layoffs, sort of puts the "your book is cancelled" message I got into perspective.

People are losing jobs and incomes. I'll just cancel that pity party I'd planned.

[Lynn Rush]

Yikes. I heard about the layoffs yesterday.... And during the holidays. I'm praying for those who have lost their jobs recently. Hang in there.

[Rob Sargeant]

I've noticed as well Chip this past year that trade paperback prices have gone up 5-10%.

[Madison Richards]

I'd like to make a rosy prediction: As far back as there have been books (and poverty), reading has been the one pastime that doesn't cost a lot of money. There are far more spendy and technologically advanced industries that will be hit a lot harder. I doubt the book industry has much to fear, ultimately.

Books are a simple escape that humans crave, especially when life goes crazy and the economy starts to tube. Although the fat is being trimmed from publishing companies, perhaps they were overly bloated to begin with, and perhaps these cuts will actually result in an improvement of the quality of what is published in the future. Few books of better quality would be fine by me...

IMHO,
Madison Richards

[Mike Morrell]

Wow Chip, you're right - there are no two ways about it, this sucks. I can only hope that this era brings us all together - publishing people and the rest of the public alike, people of faith and those who long for faith. May Wisdom's hand guide us all in the decisions we next make in this pivotal year!

[Avily Jerome]

I say all the Chip MacGregorites band together to save the economy. Spend a little extra, go buy books (for yourself and others) and between us, we'll MAKE the book/publishing industry recession-proof!
:)

[Keri Wyatt Kent]

One of the things you always say, chip, is that good writing will win out. (or something like that) In years where the economy is booming, I think people in a lot of industries say "yes" too easily. (Take the mortgage industry, for example).
In tougher times, that "yes" from a publisher is harder to get. You can't do much to change the economy, but you can improve your writing. Hone your craft, be persistent. Fewer books hopefully means the ones that do get published will be the best quality.