Publigroupe: Restructuring and reduction of 200 jobs planned
Publigroupe plans to carry out a major round of job cuts through 2015. Among other measures, the advertising agency will sell a large portion of its real estate portfolio and cut approximately 200 jobs by 2015.
The largest sales division, Media Sales, is being restructured with new, "drastic measures to ensure profitability and increase digital sales". This was announced by the listed Publigroupe on Thursday morning. The implementation by Beat Roeschlin, CEO of Publicitas, will be overseen by a management committee consisting of Publigroupe Board members under the leadership of Pascal Böni.
Publigroupe CEO Hans-Peter Rohner will step down from his dual mandate at the 2012 Annual General Meeting, but will remain Chairman of the Board of Directors.
Furthermore, "the sale of a large part of the real estate portfolio" is planned for next year, according to the statement. Four properties in Lausanne and Bern will be put up for sale. The net proceeds from the sale, which will be in the mid double-digit million range, will largely go to Publigroupe's shareholders.
Accounting changed
In spring 2012, Publigroupe will change its listing on the Swiss stock exchange (SIX Swiss Exchange) from the main segment (Main Standard) to the national segment (Domestic Standard). This will result in a change in accounting from IFRS to Swiss GAAP FER. According to Publigroupe, this is intended to achieve greater transparency for the Zanox and Local.ch holdings, both of which are managed with partners. Publigroupe shareholders will be able to follow the development of these two investments more closely thanks to the simple proportionate consolidation. In addition, goodwill on acquisitions will no longer be capitalized in future, but written off directly to equity.
Job cuts
The so-called optimization steps at the group company Publicitas with 1,300 employees are to build on the decentralized strengths in print marketing. The restructuring will lead to a net reduction in staff of around 200 employees by 2015, with more than half of them working abroad," writes the company on the job cuts. However, the marketing of digital and multimedia media platforms will be expanded rapidly and sustainably. The marketing of advertising space in cinemas will continue.
