Nielsen Cutting Costs, 3,500 Jobs
• Nielsen Holdings plc today announced what is described as “a broad-based optimization plan to drive permanent cost savings and operational efficiencies, as well as to position the Company for greater profitability and growth.” Nielsen says it is “prioritizing resources to focus on key strategic initiatives, higher margin products and services, and greater efficiency.” As part of the plan, the Company will exit several smaller, underperforming markets and non-core businesses in the second half of 2020. And here’s the kicker: The optimization plan also includes a global reduction in force of approximately 3,500 employees.
CEO David Kenny commented, “Across Nielsen Global Media and Nielsen Global Connect, we are making progress on increasing our operational and financial discipline, including zero-basing our cost structure as we move toward the planned separation of Nielsen Global Connect. As discussed on our earnings call in April, we have increased our focus on platform consolidations, further automation, optimizing our global footprint, and ensuring that our resource allocation aligns with high-margin essential services. Today’s plan encompasses, accelerates, and expands on those initiatives. These restructuring actions will further expedite our transformation to a more efficient, agile, and scalable organization and are designed to drive sustained margin expansion and increased cash generation. As part of the optimization plan, we have made the difficult decision to exit selected businesses and markets and permanently reduce our workforce. While these are important actions to take, I recognize the impact they have on our people, and I am grateful for the important contributions made by these talented associates during their time at Nielsen.”
Nielsen expects the plan to be substantially completed in 2020 and for restructuring actions and other permanent cost-saving initiatives to drive approximately $250 million in pre-tax annual run-rate savings. Cash payments for severance costs will continue into late 2021.
