Future Network To Cut 140 Jobs

Future Network is to cut 140 jobs as a result of the final stages of a reorganisation of its UK business.

The company has divided its UK business into three operating divisions: Games, Computing and Entertainment and through cuts in staffing levels and property overheads has reduced total fixed costs of its UK business by £8.5m annually.

The specific changes involve: reductions in centralised support services, and internet and magazine teams, rationalisation of the company’s property portfolio, and a change in the way the UK business is managed, meaning that individual divisions will be independent but responsible for achieving profit targets.

Chief operating officer of Future Network, Colin Morrison, said: “This plan is important because of the substantial reduction in our fixed operating costs against a broadly unchanged magazine portfolio. But much more than that, this restructuring and decentralisation plan simplifies our business, and will improve our focus, agility and control.”

Chief executive of Future Network, Greg Ingham, added: “We have made significant changes to our business worldwide in recent months, as part of a comprehensive plan. This change to the structure and management of the UK business is a very important element in that process. How ever difficult some of the changes have been for those involved, what is emerging is a stronger business.

Future’s shares have had a punishing year, following the dotcom slump and accounting errors in its French business which put investor confidence into a tailspin last year(see Future Shares In Freefall As True Cost Of Accounting Errors Is Revealed). Having slipped ½p to 36p yesterday, shares had rallied by mid-morning today, rising 1p to 37p.

Future Publishing: 01225 442 244 www.futurenet.com

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