Newsweek readership in freefall

NEW YORK (AdAge.com) -- Newsweek's new management plans to chop its guaranteed paid circulation by 500,000 copies, dropping its promise to advertisers down to 2.6 million paying readers from 3.1 million, those with knowledge of the move said today.

Newsweek cited rising postal and other costs in explaining its decision to cut its rate base.

Newsweek cited rising postal and other costs in explaining its decision to cut its rate base.

The 16% cutback is one of the largest among a series at big magazines over the last few years, a sweep that has seen ambitions reduced at diverse titles including Playboy, Reader's Digest, Star, Woman's Day and BusinessWeek.