By Katherine Hamilton
IAC is cutting staff and changing its name to People Inc. as it shifts its focus to its core publishing operations.
The name change and cost-cutting are moves to focus on People's digital operations, alongside the company's increasing stake in MGM Resorts International, Chairman Barry Diller said in a letter Tuesday.
People Chief Executive Neil Vogel and Chief Financial Officer Tim Quinn are expected to become IAC's chief executive and finance chief, respectively.
Christopher Halpin is stepping down as IAC's chief operating and financial officer, and Kendall Handler will stop serving as chief legal officer, IAC said.
As part of the name change, which will go into effect when the company reports second-quarter earnings in August, IAC is reducing its workforce and consolidating corporate functions. It plans to transition necessary IAC staff to People, which will result in a significant reduction in total workforce, Diller said.
The cost-cutting initiative is expected to generate annual run-rate cost savings of about $40 million and is projected to wrap up by the first quarter of 2027.
IAC projects it will incur about $14 million in severance and related expenses, plus roughly $48 million in noncash stock-based compensation costs and up to about $1 million in other costs.
Alongside the changes, IAC wants to concentrate more on its stake in the casino company MGM Resorts, Diller said.
IAC has been accumulating shares of MGM Resorts, with the thesis that "there was no technology that was going to displace a customer from going to Las Vegas," Diller said in his letter. It has increased its original 12% stake to 26%.
The combination of a mostly online media business with the brick-and-mortar operations of MGM is "a perfect hedge in a world that is changing so unpredictively fast," Diller said.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
April 28, 2026 09:16 ET (13:16 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments