Consumer Reports tries to follow its own advice and save money

Even magazines that are not dependent on 60% or more of their revenue from advertising are feeling the pinch of recession. Case in point is Consumer Reports magazine, which on principle accepts no ads at all and is negotiating with its unionized employees to cut $1.8 million from its budget, by which means it hopes to avoid layoffs. 300 of its 600 employees are members of The Newspaper Guild.

According to a story in Folio:, Consumer Reports' fiscal year started June 1 with a projected operating loss. So far, management and exempt employees have agreed to forego raises, bonuses and have adjusted their retirement benefits.

The magazine's management has, in line with the contract, already identified 21 employee positions to be cut if the concessions and savings can't be found by July 12. According to the story, Consumer Reports has experienced significant growth over the last five years, with newsstand sales reaching 190,000 in 2008, up from 83,845 in 2002. Subscriptions have surpassed 4 million and Web-based subscribers are more than 3 million.