Member Article

Struggling Pearson Publishing to cut 4,000 jobs

London-based Pearson Publishing has announced it is to cut 4,000 jobs across its worldwide operations.

The planned £320m restructuring will see it shed almost 10% of its workforce.

The world’s largest publisher has also had to downgrade its profit forecast for 2016 after it revealed to the stock market today that earnings per share this year would fall to between 50p and 55p, down from 70p last year.

It has been a time of upheaval at the publishing house after it sold its share in the Economist for £439m in 2015 as it sought to focus more on its education business. That followed the merger between Random House and Penguin in 2013.

Pearson’s Chief Executive, John Fallon, echoed the sombre tone of the figures and blamed the firm’s struggles on ‘cyclical and policy related challenges’ which ‘have been more pronounced and persisted for longer than anticipated.’

He added: “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.”

Sidney Taurel, chairman of Pearson, expanded further on the restructuring plans: “Pearson is a company with strong market positions, real competitive advantage and a significant medium-term market opportunity.

“The Board believes that the restructuring that we’re announcing today will help build on these strengths and position Pearson to take advantage of its market opportunities, enjoying sustained growth. I look forward to working with John and the executive team to deliver this agenda.”

The company has said it will provide more detail on its restructuring strategy when it presents its preliminary results in February.