NEWS27 October 2011

Alterian plans job cuts to save £10.6m

Financials UK

UK— Alterian is looking to save an additional £10.6m in operating costs through staff cuts and office closures as part of the business transformation initiative being implemented by new CEO Heath Davies and chairman Phil Cartmell.

Staff numbers will be reduced at the marketing analytics firm to approximately 260 people. An FAQ on the company’s website puts current employee numbers at “around 300”.

Meanwhile, the firm lists 17 offices globally, including a master reseller in Spain and development and commercial enquiries offices in India. It has not said how many offices will be left after consolidation.

The £10.6m cuts come on top of the £6.2m of savings announced in May 2011 and will be achieved by the end of 2011, the company said.

In terms of operational structure, Davies (pictured) and Cartmell have organised the firm around three product lines – campaign management and analytics, social media and insight and web content management – and two territories: Asia Pacific and Central Europe. Each unit is headed by a new executive vice president, with two of those based in the US.

The transformation update comes in the same week that Alterian rejected a £50m takeover approach. It has asked shareholders to “give the new management team the necessary time to complete the company review and transformation programme, execute its strategy and deliver greater shareholder value in the near and medium term”.