NEW YORK: PR Newswire (PRN) has cut 25 positions as part of its parent company United Business Media's overall headcount reduction of 300 staff during the second half of 2008.
UBM announced those plans in its interim results November 18. It also noted that PRN's profits for 2008 will be lower than last year “due to the loss of market share” in its “US wire distribution business earlier in the year,” and continued investment in its infrastructure, sales and marketing, as well global expansion. In July, UBM reported that PRN revenues rose 7.2% in the first half of the year, but that operating profit fell almost 15% to about $29.5 million.
Also, David Armon, PRN president, plans to step down from his position after the first half of 2009, at which time he will consider a consulting role.
“I'm coming up on 20 years [at PRN], and I want to make sure I have a steady, well-planned transition,” he said.
Rachel Meranus, VP of PR at PRN, said Armon is leaving voluntarily.
The position cuts were made across departments, and some staff were given the option of applying for other positions within the organization.
“There's no industry or sector [unaffected] by this economic crisis we're living through,” Meranus said. However, she emphasized that PRN is not cutting back on its investment in the business. It just announced the acquisition of Xinhua PR Newswire and other Xinhua Finance's Asian businesses.