Meredith cuts 600 Florida jobs, will move work to Iowa-based CDS Global

Meredith Corp. will cut about 600 jobs at a Time Inc. customer service center in Florida in its first major move to consolidate the two businesses.

Des Moines-based Meredith completed its $2.8 billion acquisition of New York-based Time on Feb. 1.

Over the next year, Meredith will transition Time's titles to its longtime Iowa-based vendor CDS Global. CDS handles customer service, renewals and subscription fulfillment for all of Meredith's publications.

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Meredith Spokesman Art Slusark says the change is among the first realizations of the $400 to $500 million in expected savings the company expected to gain from the merger.

"Obviously, it’s a volume move," he said. "By moving the business over there, we’re getting a better rate. It’s a win-win for Meredith and for Iowa and for CDS. We experience a cost savings, and CDS gets some more jobs, which benefits the state of Iowa."

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CDS isn't ready to say exactly how the change might affect its numbers of employees.

"We staff according to business needs, and while we may hire more employees to support this additional Meredith business or the addition of any business, it’s too early to determine the number of positions, areas within the company or timeline," read a company statement.

CDS currently employs about 1,800 workers, including about 575 in the Des Moines area, where it is headquartered. CDS is owned by media conglomerate Hearst, a division of which also owns the Des Moines-based CBS-affiliated television station KCCI-TV.

Meredith will first transition Time's monthly titles like Southern Living to CDS before moving over weekly titles, which include Time and People. Meredith expects to close Time's customer service operation in Tampa within the next year.

The publisher is now examining its giant combined portfolio to gauge which titles it wants to keep and which it plans to sell.

Meredith has relied on CDS for its fulfillment needs for years, Slusark said. And readers of Time titles shouldn't notice any difference in their service.

"We've been very pleased with CDS' service," he said. "We expect continued good customer service. To the subscribers, there will be no difference."