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It might be that they won't need as much staff in order to do the work. Formatting for an e-book is different than formatting for a hardback or paperback. Maybe they think there would be less marketing.
I don't think the numbers would be that high but I could see folks being laid off. I think once they did it and the number of e-books increased they would be able to hire more folks. Especially if they opened some specialty lines. An author could come to them for editing and proof reading help for e-books only. If things go well, than they could offer a paper book contract. That might help them attract the Independent Authors, help improve those books, sign them to a specialty label so people know that there is a difference between the main branch and the e-book branch. Move the best into the main branch.
It would cut back on their recruiting issues and help them find new authors.
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