Pearson cuts 10% of its workforce as it knuckles down with education rebrand
Pearson has announced widespread cuts as part of a £320m savings plan that will see a tenth of its workforce culled.
An estimated 4,000 members of staff will be dropped by the US publishing and textbook company, however, chief executive John Fallon argues that the move will put the company on a path back to profit by 2017.
After selling the Financial Times and a stake in the Economist to Japanese media company Nikkei, Pearson announced earlier this month that it was intent on rebranding as ‘the world’s learning company’.
The company was reportedly hurt by falling US college enrolments and supposed education regulations in the UK.
Ten per cent of the company’s 5,000 UK staff looks set to be cut too. It offered a profit warning saying 2015 profits will be £720m warning a 2016 drop to between £580m and £620m.
Pearson’s chief executive John Fallon said: "The cyclical and policy related challenges in our biggest markets have been more pronounced and persisted for longer than anticipated."
"Faced with these challenges, we are today announcing decisive plans to further integrate the business and reduce the cost base, rationalise our product development and focus on fewer, bigger opportunities."