Aegis to cut 5% of global workforce

Aegis is to cut 5% of its global workforce, around 780 employees, as it seeks to cut costs in the economic downturn.

The firm revealed the cuts today as it announced its financial results for 2008. It said that the job losses would help it save £20 million in 2009.

Aegis reported a pre-tax profit of £166.8 million in 2008, a 25% increase year on year.

Operating profits grew 26.8% on an underlying basis to £185.4 million while revenues were up 21.3% to £1.34 billion.

Aegis Media, meanwhile, reported a 22.3% increase in underlying revenues to £823.8 million.

John Napier, chairman and interim chief executive officer, said: “This is a good set of results in increasingly difficult market conditions. We have planned and initiated firm action to improve efficiency and reduce costs across more than 40 countries.”

He added: “In summary, this is a good start to the priorities we set ourselves. Obviously there is still more work to do but I am pleased with progress to date.

“We have positioned the group appropriately and expect to produce a resilient performance in more difficult markets in 2009.”