The publisher Scholastic is laying off 400 employees on the eve of publishing the new Harry Potter. “Scholastic has been steadily tightening its financial belt since the beginning of the calendar year, following a terrible January when sales were particularly weak in the company’s trade and school book club divisions. In March, it announced for the second time in two months that sales and earnings in fiscal 2003 would not meet expectations. Scholastic has been hurt by the sluggish general economy and state budget pressures that have cut back school and library funding.”