UPDATE: Pearson To Cut 100 Jobs At Penguin UK
07 Juillet 2009 - 6:21PM
Dow Jones News
Pearson PLC (PSO) said Tuesday it will cut 100 jobs in the U.K.
division of its Penguin book publishing business, part of a
reorganization designed to cut costs and address the rise of
digital media.
Publishers of reference books such as health and travel guides
have had to compete with Internet sites that offer similar
information either for free or at lower cost.
Some of the Penguin job cuts will come from Dorling Kindersley,
which publishes illustrated reference books, and its Rough Guide
travel publication business, where the group will move some of its
publishing to an existing center in New Delhi. The job losses
amount to around 10% of Penguin and Dorling Kindersley's staff in
the U.K.
Other job cuts will be spread across Penguin Group roles and
back-office functions.
Penguin's restructuring is designed to cut costs and prepare the
group to face the fundamental structural change in the industry and
includes the appointment of Anna Rafferty as digital managing
director to reflect an increased emphasis on digital
activities.
The company has already begun the move to offering digital
content with the launch of Penguin 2.0 in the U.S. late last year
that allows readers to access content on mobile phones, with social
networking and community functionality following close behind.
"Digital technology is altering the shape of book publishing,
creating tremendous new opportunities but also putting
unprecedented pressure on our costs and our traditional ways of
working," said Penguin Group chairman and chief executive John
Makinson.
Digital or eBook readers such as Amazon.com Inc.'s (AMZN) Kindle
and Sony Corp.'s (6758.TO) Digital Reader are also changing the way
consumers read and purchase books, and are cost saving
opportunities for book publishers who still charge for the books
but no longer need to print them.
Pearson is an international media and education company. Its
main divisions are Penguin Group, Pearson Education and Financial
Times Group.
At 1523 GMT, Person shares were up 2p at 588p.
-By Kathy Sandler, Dow Jones Newswires; 44-207-842-9293;
kathy.sandler@dowjones.com