Shares of Houghton Mifflin Harcourt Co. slumped 1.9% in afternoon trading, after the education services company said it will slash its workforce by 8% as its streamline operations and provided a downbeat outlook for third-quarter sales, but raised its full-year billings outlook. The company had 3,600 employees at the end of 2018, according to its annual report, so an 8% reduction would represent the elimination of 288 jobs. The company said a redesigned development model will result in about 20% less content development expenditures than previously planned. Separately, the company said it expects to report third-quarter sales of $563 million, which is below the FactSet consensus of $585 million. Houghton Mifflin is projected to report third-quarter results on or around Nov. 7, according to FactSet. The company raised its 2019 billings guidance range to $1.59 billion to $1.62 billion from $1.53 billion to $1.61 billion. The stock has dropped 44.4% year to date, while the S&P 500 has rallied 19.7%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Houghton Mifflin to cut workforce by 8%, provide sales outlook that is below expectations
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