Publishers Lunch
Penguin Random House
ceo Markus Dohle announced to staff in a letter that Penguin employees
currently working at 375 Hudson Street and 345 Hudson Street will move uptown
in early 2019 as the company takes over "essentially" the entire
office space at 1745 Broadway. (The building has a residential component
comprising the upper floors, in addition to the 25-story office condo.) Aside
from the operational efficiencies and collegiality, Dohle says the company will
save "approximately $20 million annually" in expenses after
consolidating.
Acknowledging having told employees previously "that there were no plans
in the works" to consolidate the two groups, Dohle writes that "our
landlord at 1745 Broadway presented us with an unanticipated, one-time
opportunity to accommodate us all in our midtown location at a greatly reduced
long-term rent." At the same time, he promises employees, "The
building move will bring about physical shifts for many teams, but it will not
cause our organizational structure to change in any way."
When Random House first moved into the office space in 2003 right after it was
built, they were consolidating Random House and Bantam Doubleday Dell into one
building for the first time, filling the entire 674,000 square feet of space,
and Random House has held the lease to that space ever since.
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