Tags: Financial-Times | Staff | Job | Cuts

Financial Times Staffers Are Told to Brace for Job Cuts

Monday, 04 Mar 2013 03:58 PM

Pearson Plc Chief Executive Officer John Fallon, who announced last week a plan to generate 100 million pounds ($151 million) in cost savings in 2014, told staff at the Financial Times unit Monday that there will be fewer jobs in the U.S. and U.K. as the publisher focuses on emerging markets, according to a person who attended the meeting.

The newspaper is doing in one year a restructuring that would normally be spread over six, Fallon told FT employees at the gathering in London, said the person, who asked not to be identified because the meeting was private. No potential job-cut numbers were given, said the person.

Pearson forecast last week its 2013 operating profit will be “broadly level” with 2012 before restructuring costs and including the Penguin book business it’s separating from. The London-based company plans to spend 150 million pounds on the reorganization this year as it accelerates the move of its education business to fast-growing regions and digital services.

A Pearson spokesman confirmed that there was an employee presentation at the FT Monday, adding that it was traditional that staff are updated on company results.

FT Group CEO John Ridding, who joined Fallon Monday at the meeting, said that while losing some positions will be the most difficult part of the restructuring, maintaining the current situation isn’t possible, the person said. Neither executive specified which departments would be affected, according to the person.

The structural change under way in the newspaper industry makes it necessary to act more hastily, Ridding said, according to the person. Changes include adding more jobs in Brazil, India and China, and embedding FT videos in educational materials at Pearson-owned schools.

Fallon, who took over from Marjorie Scardino in January, also told staff that the Financial Times isn’t for sale and that every Pearson unit has to be sustainable, according to the person.

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Pearson Plc Chief Executive Officer John Fallon told staff at the Financial Times unit Monday that there will be fewer jobs in the U.S. and U.K. as the publisher focuses on emerging markets, according to a person who attended the meeting.
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2013-58-04
Monday, 04 Mar 2013 03:58 PM
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