LBi makes 150 job cuts and merges agencies

LONDON - Digital agency LBi has cut 150 jobs or 9% of its global workforce in the first quarter as it restructures its European and US operations.

The job cuts were concentrated in central Europe and the US, where the company expects revenues to come under more pressure. The UK is unaffected.

The severances and charges related to property will cost the company a one-time charge of €3.6m (£3.3m) in the first quarter.

The agency has brought forward plans for a strategic restructure of its central Europe and US operations, which was originally earmarked for the fourth quarter.

In both territories it will replicate its UK full-service agency model by combining currently separate agencies into a single P&L LBi-branded entity. This will offer services across digital strategic marketing, media, CRM and website design and build.

Central Europe will be transformed into a full-service hub managed from the Dutch office. In addition LBi Germany and media specialists Iven and Hillmann will work in concert with LBi Netherlands.

In the US, LBi is moving to merge full-service agencies Special Ops, Nicholson and LBi Atlanta by the end of the year

LBi believes the restructuring and staff reductions will achieve annualised cost savings greater than €9m.

Huub Wezenberg, chief financial officer, said there would not be any more headcount reductions as a result of the round of restructuring, "but we cannot exclude more restructuring activity if the market situation will deteriorate further".

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