As most agency operating expenses are salaries, you can expect Aegis to continue sloughing off jobs.
Revenue for the first six months of 2009 was â‚¬637 million, an increase, but organic sales were down 10.8 percent. The group made a loss of â‚¬0.4 million.
At least one staff member at Aegis is safe in his job: "interim" CEO John Napier. BNET suggested in March that Napier might not actually leave, and that prediction is coming true, according to the FT:
The search for a new chief executive at Aegis Group could run into next year, the marketing services company admitted on Friday.Napier also said he's not in talks with Havas over a long-awaited merger. That also secures Napier's job because if the two companies did merge, one CEO would have to go -- and as Napier already flagged himself as the interim man, it would look odd if it wasn't him:
"There are no talks of any sort nor have there been with Havas, in terms of any sort of tie-up or merger of the two companies," Napier said on a conference call.This is exceptionally strange, because with Aegis and (likely) Havas both in a position of seeing declining or flat efficiencies in their networks, a merger would give them a good excuse to cut out duplicate cost centers (HR etc). But with no merger, Aegis can only do more layoffs to get its efficiencies up again. The Guardian:
Media group Aegis is speeding up its cost-cutting plan, especially in its market research business,
- See previous BNET coverage of Aegis and Havas:
- Has Havas Boss Bollore Hamstrung Himself on Aegis Deal?
- Aegis Puts Up Barrier to Havas Takeover Bid; Has Bollore Missed His Chance?
- Aegis Q4: Not Talking to Havas; Deal Price Getting More Expensive; 780 Jobs Cut
- Alloy, Aegis Top BNET's Network Efficiency Ranking; WPP Slips
- Havas Q4: Flat Revenues Hide Rising Salaries Budget
- Havas-Aegis Deal Starts to Take Shape; GfK Will "Take a Look"
- The Havas-Aegis Deal Worst-Case Scenario
- With CEO Out, Wall Street -- and Havas? -- Plot Demise of Aegis