IPC Magazines has made 200 redundancies as part of a drastic
restructure, designed to realise annual savings of around pounds 6
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
It will free up the organisation to act like a group of young growth
Matthew said there would be no changes to the main board. Link House
Magazines, which IPC acquired in October, has been excluded from the
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
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.