Moreover, it has to freeze employees’ pensions next year. Retrenchment of the 550 employees along with the pension freezing has been eyed on making a huge saving.

The plan at education unit is expected to come in force by the end of the year. These plans are part of a broader plan to split the company into two. The job cut will be at the rate of 20 percent for executive positions adding to make an overall 10 percent cut.

Company had announced in September its plans to split itself into two companies– one doing in education and the other in finance. And company also wanted to address the competitive needs of the day in the field of education.

It wants to switch to a company working on subscription basis. It is the new trend with the modern digital formats. The company has till now been mostly publishing books.

The steps like freezing of pensions are reported to be helping the company to judge the retirement costs better. The steps are likely to save $50 million annually.