Downturn sees a 15 per cent cut in Chime employees

Chime Communications this week admitted its PR businesses have

suffered from the economic downturn, leading to 15 per cent cutbacks in

staff.



The firm's share price fell suddenly after it released a trading

statement on Tuesday in which it said it did not expect the adverse

market conditions to improve until late 2002.



Shares were down by 7.9 per cent when the market opened on Wednesday,

before rallying later in the morning.



In order to cope with the downturn, Chime has laid off 15 per cent of

its staff this year. It said that exceptional restructuring charges

originally estimated at £2m had gone up three-fold to £6m.



The drop in PR revenue was attributed to Chime's financial PR

businesses, which include First Financial and Smithfield Financial,

which have suffered as M&A work dried up this year.



However, Chime maintained that Good Relations, another of its PR brands,

had performed well, as had Bell Pottinger Public Relations.



The statement said that Chime does not anticipate making more job cuts

'unless market conditions deteriorate further'.



Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Latest Articles

Labour hires Obama election strategist David Axelrod to fight General Election

Labour hires Obama election strategist David Axelrod to fight General Election

The man who helped Barack Obama win the 2008 and 2012 US presidential elections is to work for Labour along with members of his team.

Sky adds Fever PR to its roster after splitting with Cake

Sky adds Fever PR to its roster after splitting with Cake

Pay-TV giant Sky has added Fever PR to its agency line-up for a wide-ranging brief covering products and services.

Max Clifford trial jury to continue deliberations after Easter break

Max Clifford trial jury to continue deliberations after Easter break

The jury in the trial of celebrity publicist Max Clifford has been sent home for Easter and will reconvene on Tuesday for further deliberations about its verdicts on 11 charges of indecent assault.

Home Office brings in Munro & Forster to campaign against FGM

Home Office brings in Munro & Forster to campaign against FGM

The Home Office has tasked Munro & Forster (M&F) with supporting its campaign to eradicate female genital mutilation (FGM) as part of a wider retained brief.