B2B media giant VNU is taking the painful steps necessary: it will cut 4,000 jobs, or about 10 percent of its work force, and sell its European business media division to 3i, a private equity firm, as expected. The restructuring aims to cut VNU’s cost base by 10 per cent over the coming year, said CEO David Calhoun.
It will combine product innovation, research and development, and marketing into a single organization led by Susan Whiting, who is being promoted from CEO of Nielsen Media Research to EVP. Also, the reorg into five geographic regions will see two executives leave: Frank Martell, COO of AC Nielsen; and Steve Schmidt, CEO of marketing information.
Savings will be reinvested in four initiatives, including a media measurement plan that aims to capture the use of PVRs; a new marketing effectiveness tool that combines consumer, retail and media information; a service for retailers looking to manage the data from their loyalty programmes; and new digital platforms for its magazines such as Billboard and Hollywood Reporter.
Meanwhile on the sale of VNU BUsiness Media Europe, the sale price of which was not disclosed, includes operations in Britain, the Netherlands, Spain, Italy, Germany and Belgium. The proposed sale of the unit’s French operations is still under discussion.
Some more details on the changes here and here in the releases.
Related: VNU Business Media Europe Set For $420 Million Sale To 3i: FT
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