One of top advertising company Publicis Groupe has announced series of restructuring plans to cut down its cost to boost its bottom line amidst decline in sales due to COVID-19 pandemic. As per plan, the company has planned to slash costs by 500 million euros ($545 million) by cutting management pay and halving its dividend. Company CEO Arthur Sadoun is taking a salary cut of 30% for the next two quarters and the members of the Management Board and the Management Committee are voluntarily reducing their fixed compensation by 20% for the second and third quarters.
The company released its Quarter 1 figures 10 days before its original scheduled date. As per release, sales at the world’s third-biggest advertising company were down 2.9% on an organic basis in the first quarter to 2.48 billion euros. On regional basis, revenue was down 9.2% in Europe and down 1.9% in the Asia Pacific region while up 0.5% in North America. The company said still unable to give financial guidance due to the fallout from the pandemic
The cancellation of major sporting events and the decimation of the luxury, entertainment and travel industries are delivering a hammer blow to a global advertising industry that was already reeling from years of tech-led turmoil.
Additionally, the company would also review capital allocation country by country.