Ipsos Initiates Business Protection Cost Saving Measures

Ipsos has implemented a series of measures intended to protect its margins, liquidity and ability to work with its customers, as a result of the COVID-19 pandemic.

Following a 40% fall in orders during the month of March, Ipsos has frozen all recruitment, along with planned salary increases, whether or not linked to promotions. In addition, around 700 of the firm's directors and executives have agreed to monthly salary reductions of up to 20%; and while bonuses linked to 2019 performance have already been paid, those relating to 2020 have now been put on hold.

International travel had been suspended since February 28th, and now all other spending - including leases and capital investments - has been reduced as much as possible. A weekly reporting system has replaced the usual monthly reporting, and at the next general meeting of shareholders, to be held at the end of May, a dividend of 45 cents per share will be proposed - almost 50% less than initially planned. In addition, share buybacks have been suspended.

A third of Ipsos' turnover is conducted using 'face to face' methodologies, and last month new orders fell by around 20% because of what the firm described as a 'significant volume of cancellations and postponements' of projects whose execution requires direct physical contact between people, for example researchers and interviewees. The 'vast majority' of this work stopped after the lockdowns, and although some has resumed and moved to telephone or online methodologies, most will not restart until social distancing measures end. For an order book in mid-March close to a billion euros, postponements and cancellations represented around 7% of this total, compared to a usual level of less than 2%.

In a statement, Ipsos said it is confident in its ability to get through the period. 'The research industry, and within it Ipsos, are preparing to live up to the challenges that our clients will encounter. The persistence of a large flow of new orders addressed to Ipsos bears witness to this', the firm added.

Ipsos is led by CEO Didier Truchot (pictured) and is online at www.ipsos.com .