Cordiant Communications watched its stock fall 10% after revealing problems arising from the economic slowdown.
Speaking at the group’s annual meeting, executives revealed that Cordiant’s revenue growth is slowing, with full-year forecasts cut from over 10% to 5%. “Revenue growth for 2001 as a whole is now expected to be in line with the market,” said Cordiant chairman Charles Scott.
It also emerged that Cordiant has laid off a number of employees – “in a number of our businesses” and “over a number of months” – in order to improve profitability. No further details of the extent, location or timing of the job cuts were given, although it is estimated that around 400 staff have been axed.
Cordiant, the world’s ninth largest agency company by billings, is parent to Bates Worldwide and joint-owner of Zenith Media with Publicis Groupe.
News source: New York Times