17 Days Remaining

Saturday 5th
posted by Steve Sweeney in Britain

EDUCATION publishing giant Pearson is set to lay off 3,000 jobs as it seeks to cut costs following a record £2.6 billion loss last year.

The embattled firm said cuts would be made across “managerial positions, centralisation of procurement and the reduction of office locations.”

With the latest round of cuts chief executive John Fallon will have axed 10,000 jobs, amounting to a quarter of Pearson’s global workforce.

Publishing union Unite warned Pearson against trying to cut its way out of a crisis and called for a growth strategy based on sustained employment.

Unite national publishing and media branch secretary Gareth Lowe told the Star: “John Fallon will have shed 25 per cent of Pearson staff across the globe. Long-term structural growth cannot be achieved through job cuts.

“You cannot cut your way out of a crisis. A sustainable strategy for growth requires staff and sustained employment.”

Pearson said it was undertaking a £300 million “cost efficiency programme” this year.

It warned that it was planning to cut £70m next year with an incremental £130m in 2019 and a further £100m in 2020.

First-half results saw revenue increase by 1 per cent to £1bn with an operating profit of £16m compared with a loss in the same period in 2016.

Mr Fallon said the company was making solid progress on its strategic priorities and was focusing on maximising performance through “the critical second half” to “create longterm sustainable value for our shareholders.”