After the gala opening of Hearst's new Norman Foster-designed headquarters—where guests including Oprah Winfrey and Martha Stewart took in performances by Cirque de Soleil and Stevie Wonder— employees of the family-owned publishing house may have felt like times were good.

But a reality check came last week in the form a belt-tightening memo from executive vice president John Loughlin, which went out to top managers at all Hearst titles, including Cosmopolitan, Harper's Bazaar, Seventeen, and Esquire.

"As we confront an increasingly challenging publishing environment ... we have to make each of the expense dollars we spend work harder," writes Loughlin, previewing the company's new guidelines for travel and entertainment costs.

An accompanying document defines the limits on such things as meals with clients ($50 per person for lunch, meaning no desserts at Michael's and Lever House ... and no Four Seasons, period) and airline tickets (coach class only, except for VIPs). "These guidelines speak to the mindset each of us must adopt as we face a more difficult economic environment," concludes Loughlin.

On the bright side, Hearst sources say the new guidelines aren't that much more stringent than what they are already accustomed to. "They didn't make me think I would have to change things too much," says one editor. "Cutting down on car service doesn't seem like such a big deal."

Perhaps not—but it sure won't stop anyone wishing they worked at Condé Nast.

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