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Friday, June 30, 2006

Revamp and Cuts at the TES


No surprises that the TES has embarked on a round of job cuts. The CEO of the private equity backed management buy in is Bernard Gray. He used to be a henchman of Clive Hollick at UBM, most recently as CEO of CMPi. He developed a reputation there for aggressive cost cutting. His success was to improve margins dramitcally, but at some considerable cost to morale and the quality of the products in some peoples view.

Many people put their ruler over TES when it was put up for sale last year. Most concluded that there was little prospect for growth from the core business, but there were dark corners of costs to explore. The trouble is that cost cutting won't delliver sustainable growth. TES job cuts are camouflaged in a uniform of relaunch and reader research. I have no doubt that under the leadership of Louise Rogers, a one time editor of Building Design and a rare Bernard Gray favourite, the paper will be improved over time, but unless there is a strategy for revenue growth as well as cost cuts this could be an enterprise with a tough future ahead.

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