Aegis announces job cuts

20 March 2009

LONDON: Aegis, the marketing services group, is to cut some 780 jobs in 40 countries, amounting to around 5% of its global workforce, as part of a broader "cost reduction programme."

The company recently reported that its revenues rose by 21% to £1.34 billion ($1.9bn; €1.4bn) in 2008, although net profits fell 6.4% to £82.8 million.

However, it is also undertaking a cost-cutting programme in anticipation of what chairman John Napier expects to be a "tougher" 2009, which will see "a low or negative growth environment".

On a more positive note, the company is also said to have improved its relations with Vincent Bolloré, its largest single shareholder, who has repeatedy attempted to gain a seat on the board.

Speaking about Bolloré, Napier said "we are both of similar age and philosophy," and also both adopt "a shareholder focus."

However, he added that the two men had not discussed "any form of corporate or further strategic alignment or involvement."

Data sourced from Financial Times; additional content by WARC staff