News burst: 23 November 2012
The Financial Times (FT) has imposed a recruitment freeze in a run up to Christmas in a bid to control costs in an increasingly tough advertising market.
In an internal email sent by FT chief executive John Ridding and seen by MediaGuardian, titled ‘cost control/profit protection’ he outlined strict measures. These included a freeze on recruitment and also strict rules on travel expenses.
Ridding said: “As you’ll probably have noticed from recent results publications and statements from advertising agencies and news media groups, the advertising market has taken another turn for the worse.
“And while we continue to take market share, it is clear that conditions have become tougher and that the overall advertising ‘pie’ is under pressure. Visibility, too, is very poor.”
Home and car insurance firm Direct Line is to make 70 senior managers redundant as part of their plans to save £100m over the next two years.
The company announced the cuts on top of 900 job losses announced earlier this month.
Individuals to be let go include chief operating officer Jonathan Davidson and executive who has been leading the insurer’s push on meeting Solvency II requirements Sheree Howard. Chief executive Paul Geddes said: “We are creating a simpler, more efficient business which costs less to run. I don’t make these changes lightly and we will do all we can to support those affected.”