The restructure, said to be "significant and affecting people at all levels of the business", is likely to be unveiled on March 27 when a trading update is scheduled. This will also provide a clue to Emap's full-year results for the period ending March 31, due out on May 22.
The restructure follows an efficiency review conducted by Boston Consulting Group, first revealed in Media Week (7-14 November 2006). It is understood that a steering group chaired by Paul Keenan, chief executive of Emap Consumer Media, has adapted Boston Consulting Group's broad proposals, applying internal knowledge of Emap's businesses and markets.
Two weeks ago, Emap issued a profit warning and an update on the review, stating that the radio, magazines and B2B divisions had undergone detailed assessments with the aim of generating cost savings in excess of £20m a year over the next two years, with one-off costs of the restructure estimated at £30m plus £10m for new systems and buildings. The latter note suggests there may be staff relocations.
The first casualty of the review is David Pullan, strategic brand and marketing director, who was tasked with creating a consumer-focused brand proposition for Emap's key multimedia brands. Tipped as a future chief executive of the group after joining from Five three years ago, it is believed that Pullan was offered a purely marketing role in the new structure, which he declined, and he will leave the company this week.
Following last week's release of ABC figures for the second half of 2006, a number of poorly performing magazines face an uncertain future. While celebrity weeklies such as Closer, Grazia and Heat continue to fare well, there were double-digit percentage year-on-year sales declines for, among others, Arena, Q, FHM, Zoo, Maxpower, Car, Garden Answers, Golf World and Today's Golfer.
Questions are also being raised about Emap's radio assets, which were largely blamed for the profit warning.
Moloney has been opposed to a radio sell-off, however, his future has been in doubt since the arrival in July last year of chairman Alun Cathcart, who is said to be a more aggressive proponent of shareholders' interests.
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