Cordiant revealed in a trading statement today that it expected a further reduction in profit expectations, after advertising campaigns were cancelled and levels of media spend were reduced -- particularly in continental Europe.
In September, it predicted revenues would be down by 5% on last year, but today it extended that figure. Cordiant's share price plunged 19.8% when the markets opened this morning, with its shares down to 75p from Friday's close of 93.5p.
The company, which owns the Bates advertising network as well as 50% of Zenith Media, also warned it faced a one-off charge of £25m relating to cost-cutting measures. In August, Cordiant planned around 700 job cuts, including 300 in the US. Now, it says it expects severances to exceed 1,100 staff.
One of the casualties has been the interactive business CCG.XM, which has been folded into 141 Worldwide. Cordiant said that other loss-making operations would be closed or reorganised.
Last week, Cordiant shares plunged as it was revealed that Hyundai Motor, which chairman Michael Bungey described as one of the business's global rocks, had put its £100m US media account up for review.
Cordiant is meeting with analysts and investors in New York later today.
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