Comscore to Cut Jobs as Part of Value Creation Plan

Comscore has launched a long-term 'transformational' plan which it says will realign the business, optimize how it works and 'invest in focused long-term growth opportunities.' The plan includes workforce reduction expected to generate $20-25m in annual run-rate cost savings.

Comscore says the one-time costs associated with the plan - essentially severance, termination benefits and other employee compensation-related costs - should be in the range of $7 to $9 million. However the digital measurement pioneer says it will use a portion of the savings 'to hire key leaders who will play a critical role in the ROI Strategy and to invest more meaningfully in continuing employees, along with other transformational initiatives.'

Objectives include lowering the cost base through initiatives including more use of offshore resources for repeatable operations; reducing non-core 'areas of complexity'; sharpening organizational culture; streamlining legacy business costs and underused product features; shifting product development toward reusable, scalable solutions rather than bespoke customizations; reallocating investments toward the highest-value priorities; and investing in growth-focused areas including cross-platform intelligence, activation expansion, creator and AI solutions, and talent.

New CEO Matt McLaughlin (pictured) says that since his appointment in May he has 'spent significant time' evaluating the business and the opportunities before it. He comments: 'What is clear is that Comscore has tremendous assets, intelligent algorithms and long-standing client relationships, but we are not yet organized or focused in the way required to fully leverage that value. The issue is not effort. The issue is focus, accountability, scalability and investment capacity. We must do better, and the ROI Strategy is designed to help us do that.' McLaughlin says the transformation will entail 'a substantial headcount reduction as well as additional initiatives to simplify areas of complexity and rationalize our international commercial footprint,' and adds: 'These were difficult but necessary actions, and we expect to see the financial impact as we progress through fiscal 2027... The purpose is not to do the same work with fewer people. The purpose is to focus resources more clearly on the areas where Comscore can create durable value.'

The firm is online at www.comscore.com .

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