Tuesday 17 October 2017

Publisher Pearson says 3,000 jobs will go as part of major restructuring

Pearson is to slash 3,000 jobs as the education publisher presses ahead with a painful restructuring Credit: Pearson/PA Wire
Pearson is to slash 3,000 jobs as the education publisher presses ahead with a painful restructuring Credit: Pearson/PA Wire

Sam Sean

FTSE 100 education publisher Pearson has said it will slash 3,000 jobs as part of its restructuring efforts following its worst year in nearly half a century on the stock exchange.

Pearson has also cut its interim dividend from 18p to 5p, and announced plans for a £300m share buyback.

In its interim results for the six months to the end of June, the company said underlying revenues had grown 1pc to £2bn, from £1.9bn in the same period of last year.

The company made an overall first-half loss before tax of £10m, compared to a loss of £306m last year, as operating expenses fell. On an adjusted level, it made operating profits of £107m, up from £15m in the first half of 2016.

Pearson revealed plans to cut 4,000 jobs in January 2016, while earlier this year it said it would make £300m of savings with its latest restructuring.

"Pearson has had a solid first half,” said chief executive John Fallon. “We are making good progress on our strategic priorities and our guidance for 2017 remains unchanged. We are focused on maximising performance through the critical second half.

"Strong cash generation, prudent management of our balance sheet and implementation of our transformation plans are positioning us to be the winner in digital education, and create long-term sustainable value for our shareholders."

Last month Pearson announced it had reached an agreement to sell down a big chunk of its stake in publisher Penguin Random House to partner Bertelsmann.

Pearson, the former owner of the Financial Times, issued a major profit warning in January that led to its worst ever day on the stock market.

The company's shares jumped nearly 4pc in early trade to 694p.

Telegraph.co.uk

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