Up To 4,000 Jobs to Go in VNU 'Transformation'

VNU has begun what it calls a 'major corporate transformation' including the phasing out of its existing group structure and the cutting of up to 4,000 jobs in 2007. NMR CEO Susan Whiting is promoted to a new group-wide EVP role while Frank Martell and Steve Schmidt will leave the company.

New CEO David L. Calhoun is leading the process, which will be implemented from January 1, 2007. He comments: 'The changes we are announcing today are an important first step in our efforts to make this extremely strong global franchise even more competitive, and to improve the ways we serve our clients worldwide.' In particular, he hopes it will give the company 'the flexibility and speed we need to respond to evolving market imperatives and access more of the resources we need to continue investing aggressively for the future' and 'accelerate our transformation into a single, truly integrated operating company'.

Whiting, who has led Nielsen Media Research through a turbulent few years with challenges to its new methodologies and their representation of minorities, is rewarded with promotion to EVP VNU, leading a new single organisation combining product innovation, research and development, and marketing. She will work across the entire company to identify new product opportunities and fast-track their development and commercialization, reporting directly to Calhoun. She will move from CEO to Chairman of Nielsen Media Research and will continue to be responsible for its media and entertainment businesses.

VNU also will begin a transition to a unified, global client service organization in order to present 'one face' to its clients worldwide, offering a full spectrum of integrated solutions. This will initially be guided by the presidents of ACNielsen's five geographic regions, reporting directly to Calhoun:

• John Lewis, currently President and CEO of ACNielsen U.S., will take on an expanded role as head of ACNielsen North America with ACNielsen Canada President Pat Gardiner reporting to him
• Pat Dodd is named president of ACNielsen Europe, succeeding Frank Martell who previously combined the role with his global function as ACN's COO, and who has decided to leave the company.
• Arturo Garcia Castro, president of ACNielsen Latin America
• Nonoy Niles, President of ACNielsen Asia Pacific; and
• Lennart Bengtsson, president of ACNielsen Eastern Europe, Middle East and Africa, will continue with expanded roles.

The group will centralize operational and IT functions in a new Global Business Services organization and is searching for a leader for it – in the interim, the team will report directly to Calhoun.

In addition to announcing a new operating model for the company, VNU said it plans to achieve a permanent reduction in its cost base of 10 percent over the course of 2007. The majority will be achieved through 'business process simplification, organizational de-layering, and real estate and IT consolidation'. The company expects a reduction in workforce of as many as 4,000 positions over the course of 2007, with most of the job cuts coming from non-client-facing activities, according to Calhoun.

The company plans to reinvest money saved in major growth initiatives, including NMR's Anytime Anywhere Media Measurement (A2/M2) for digital media and personal video devices; 'follow the consumer' service NielsenConnect, including new business Nielsen In-Store [DRNO…]; new service ACNielsen Loyalty [DRNO…]; and enhanced media integration services combining marketing and media information and editorial content in 'new digital platforms for Business Media's advertisers and audiences'.

Calhoun says the group's markets are 'becoming more complex, and more fragmented, and more technology-driven than ever.'

The group, which also announced today the sale of its European Business Media companies (BME), is online at www.vnu.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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