Cordiant to shed 1,100 jobs

December 3, 2001 Posted: 0953 GMT

LONDON (CNN) -- UK advertising company Cordiant warned on Monday it plans to shed more jobs because full year revenue is expected to decline more than expected.

Cordiant (CRI), which employs 10,000 staff in 80 countries and counts Coca-Cola, DaimlerChrysler and Lufthansa among its customers, said it would cut 1,100 jobs this year. In August, it announced 400 jobs would go.

Advertising and media companies around the world have seen profits and revenue from ad spending decline shapely this year as the global economy teeters on the brink of recession.

"The global economic slowdown has led to an unprecedented rate of decline in marketing expenditure, which has accelerated across the second half of the current year," said Cordiant.

Cordiant, ranked ninth by size among world marketing communications firms, said profits would be hurt by £25 million ($35.5 million) as a result of cutting staff numbers and reorganization of businesses.

The company, which earns 85 percent of its revenue from ad agency Bates Worldwide, said it now expected underlying annual revenues to fall by about 9 percent, compared with a forecast decline of 5 percent in September.

The London-based company said the decline in revenue had been widespread, with cancellations of planned ad campaigns experienced in every region, particularly continental Europe. It has also been wounded by a sharp drop-off in U.S. marketing spending.

Cordiant's stock plunged 20 percent to 77 pence in mid-morning London trading on Monday. Shares in rivals WPP (WPP), Europe's biggest ad company, and Havas both fell more than 3 percent in early trade.