WOODLAND HILLS, Calif. – Advanstar Communications, Inc., a leading worldwide media company providing integrated marketing solutions for the Fashion, Life Sciences and Powersports industries, announced it has entered into an agreement with HCL Technologies (HCL). Under the agreement, HCL will perform the production-related functions for the Company’s magazines and directories, including assembly and inserts, among other activities.
The Company said that this agreement will provide it with significant cost savings, making the Company as a whole stronger and better able to serve its customers.
“In this highly competitive media marketplace, we need to focus on the things that we do well, creating a valuable platform for our clients, while handling other functions through partnerships or outsourcing agreements that will provide the economies of scale we need to operate more efficiently,” said Chief Executive Officer Joe Loggia.
Over the coming months, production-related functions will be transitioned to HCL Technologies and approximately 100 positions in the Company’s Duluth, Minnesota facility will be eliminated. These employees will be offered temporary employment of at least four months with HCL and will be eligible to receive severance based on Advanstar’s existing severance policy at the conclusion of their employment with HCL.
“Because of its impact on our employees and their families, this was not a decision we made lightly. Given the many challenges facing the business-to-business print industry, we must change the way we do business in order to continue to provide maximum value and service to our customers,” Mr. Loggia said.
Mr. Loggia also said that the Company has worked very hard to make this transition as fair and equitable as possible for its employees. A number of employees will remain onsite at the Duluth facility to ensure continuity of service and quality control. Once the transition is effective Advanstar will continue to employ approximately 75 people in Duluth.
About Advanstar
Advanstar Communications Inc. (www.advanstar.com) is a leading worldwide media company providing integrated marketing solutions for the Fashion, Life Sciences and Powersports industries. Advanstar serves business professionals and consumers in these industries with its portfolio of 141 events, 60 publications and directories, 233 electronic products and Web sites, as well as educational and direct marketing products and services. Market leading brands and a commitment to delivering innovative, quality products and services enables Advanstar to “Connect Our Customers With Theirs.” Advanstar has approximately 750 employees and currently operates from multiple offices in North America and Europe.
