Four hundred staffers are to be shown the door at Cordiant Communications after the firm’s second profits warning in three months.
Cordiant – owner of the Bates Worldwide network – warned underlying annual revenues would be down 9%. The admission follows September’s forecast that full-year income would drop 5% [WAMN: 01-Oct-01].
The latest job losses bring the total number of staff axed by the group this year to 1,100. Cordiant conceded it had been hurt by clients cancelling campaigns, with business suffering particularly badly in Europe.
“Trading conditions in the advertising and marketing communications sector remain exceptionally difficult,” said the group. “The global economic slowdown has led to an unprecedented rate of decline in marketing expenditure, which has accelerated across the second half of the current year.”
Continued the lament: “Revenue visibility remains short term with clients continuing to change spending plans at short notice. However, there have not been significant client losses in the advertising businesses.”
Cordiant estimated the redundancies would necessitate a £25 million one-time charge this year, but would save some £30m in 2002.
News source: MediaGuardian.co.uk