Pearson to Eliminate 4,000 Jobs in Bid to Revive Earnings
- Shares soar as company targets 350 million pounds in savings
- London company hurting as demand for education services wanes
Pearson Shares Soar on Savings
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Pearson Plc said it plans to cut 4,000 jobs, starting a new reorganization program to tackle a decline in earnings caused by slowing demand for textbooks and dwindling college enrollment. The shares jumped.
The cuts are equivalent to 10 percent of the workforce and a majority will be completed by the middle of 2016, the London-based company said Thursday. Earnings, excluding some items, will drop to 50 pence to 55 pence a share in 2016, Pearson said, the second time in three months that its forecast has disappointed investors. Analysts had predicted 63 pence, the average of estimates compiled by Bloomberg.