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Reed Business CEO: No Plans for Large-Scale Layoffs

Tad Smith, RBI executives try to keep staffers focused during sale process.


By Dylan Stableford
02/22/2008


With rumors flying yesterday following Reed Elsevier’s announcement that it would sell its Reed Business Information division—a dramatic decision to divest its advertising-supported businesses—CEO Tad Smith tried to reassure RBI staffers that their jobs would be intact—including his.

“I am committed to leading our business as your CEO during the sale process and thereafter,” Smith wrote in an internal memo. “In the meantime, business will continue as usual and everyone’s jobs, benefits and pay will be unaffected.”

“The announcement this morning neither surprises nor worries me,” Smith added. “We have a vibrant and exciting business that is successfully making the transition from print to online across dozens of market sectors in countries all around the world. There will be a healthy appetite for our business and your many contributions as staff members.”

Reed Business global chief Gerard van de Aast also moved quickly to reassure its 8,164 employees. “It is important to note that this says nothing about the quality and attractiveness of our business and the markets we serve,” he wrote in a spate memo.

Total revenue for RBI was $1.7 million in 2007, with adjusted operating profits of $253 million, cash conversion was 109% providing a stable and attractive cash flow.

Smith noted the division’s “history of diligent cost and headcount management.” The company, he said, “has no plans for a large scale layoff or other special headcount reduction program beyond the extreme care we continue to exercise on headcount additions.”

NOTE: Read both memos here.

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COMMENTS: 3

Post Comment / Discuss This Story - Info/Rules

Oh sure
Submitted by Anonymous on Sun, 02/24/2008 - 18:32.

Whenever management says "no plans for layoffs" it's time to start updating the old resume. It'll take 12 to 18 months to sell this Titanic. Advertisers will hold off until reps can give better information and the competition will have a fieled day. Fun time ahead. Good luck but better get you head out of the sand.
It's a Process
Submitted by Anonymous on Mon, 02/25/2008 - 13:27.

Assurances mean nothing in these situations. Especially with the track record of this management team. Use the time you have left to find another opportunity. If personal experience means anything when dealing with RBI, they'll string you along as long as they can, then feed you to the chipper when it suits their purpose without remorse.
Follow the divestment here...
Submitted by TheOpsMgr on Sat, 04/12/2008 - 10:01.

If you are interested in following the Reed Business divestment or sharing your thoughts you can do here - http://divestmentwatch.blogspot.com/ -TheOpsMgr
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