Matthew cuts 200 jobs in IPC revamp

IPC Magazines has made 200 redundancies as part of a drastic restructure, designed to realise annual savings of around pounds 6 million.

IPC Magazines has made 200 redundancies as part of a drastic

restructure, designed to realise annual savings of around pounds 6

million.



The job cuts - which amount to 10 per cent of the IPC workforce - are

across all areas of the company, including senior management. They come

almost exactly a year after an pounds 860 million management buyout,

backed by the venture capitalist group, Cinven.



The overhaul will cost IPC pounds 5 million to implement. Its five

publishing groups will become subsidiary companies from 1 April, each

with its own board of directors, headed by the existing managing

director, and with editorial representation. The units will be

financially accountable with profit targets each year.



IPC’s chief executive, Mike Matthew, said: ’Our primary objective is for

IPC to achieve a more flexible, creative and entrepreneurial culture,

with decision-making taking place closer to the magazines and their

markets.



It will free up the organisation to act like a group of young growth

companies.’



Matthew said there would be no changes to the main board. Link House

Magazines, which IPC acquired in October, has been excluded from the

restructure.



Matthew stipulated that a review of IPC’s magazine portfolio was an

issue separate from the overhaul of the company’s staff. But he said he

was happy with the portfolio, which was ’in a very strong shape’.



The announcement took analysts and media buyers by surprise. Paul

Richards, an analyst at Panmure Gordon, said: ’A lot of people are

downsizing but there hasn’t been a media company with that sort of

clear-out. To cut 10 per cent of your workforce and suffer no impact on

editorial takes some doing.’



A senior media agency source said: ’Cost-cutting has been mentioned, but

it was never imagined it would be on this scale. It is indicative of

IPC’s state of business and it’s obviously worse than we’ve been led to

believe.’



The changes will not affect the media buying review being held by IPC.

Manning Gottlieb Media this week joined a pitch-list of five other

agencies, including the incumbents, Zenith Media, CIA Medianetwork and

Carat, as well as MediaCom/TMBG and Walker Media. Pitches are due to

take place at the end of this month.



Perspective, p2.



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Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).