Time Inc. has begun a round of job cuts that is reported to include about 500 staffers ahead of the company’s entry into public markets.

In a memo leaked to various press outlets, Time CEO Joe Ripp said the company needed to change to succeed as a public company. The news was first reported by the New York Post.

“Today, we are beginning a restructuring process that will move us in the right direction by: eliminating our three brand operating clusters; streamlining decision-making across the entire organization; and completing the integration of American Express Publishing,” Ripp wrote in the memo.

The reorganization means David Geithner, an executive vice president who has spent 21 years at Time Inc., and American Express Publishing CEO Ed Kelly, a 25-year veteran of Time Inc., will leave the company.

Time Inc. was formed in March 2013 after Time Warner spun off its magazine unit to aid in its renewed focus on entertainment assets. Time Inc. includes a variety of iconic magazine brands including Time, Fortune, Money, Sports Illustrated and Entertainment Weekly.

As part of the spinoff, Time Inc. is set to soon enter the stock market to trade as a public company.

Time Inc. did not immediately respond to a request for comment.

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