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YouGov Squashes Job Cull Rumours
Rumours that up to 50% of YouGov's UK staff are to be made redundant have been strongly denied by UK CEO Tim Britton. Britton says a review announced this week is intended to 'cut the firm's cloth' to match current conditions and will probably mean 'a small number' of job cuts.
 Britton, who joined the firm last year, says the company is still growing, but as a result of the overall economic decline, this is not happening at the rate previously anticipated - a fact already reported and reflected in the firm's share price. Britton told DRNO that he is currently conducting an internal review of the business to determine 'what is working and what will work in the future'. He said there would probably be a small number of job cuts, but stated that anonymous reports that staff would be leaving the firm tomorrow were unfounded.
Earlier in the week, YouGov held an internal meeting with UK staff to let them know that this review is taking place.
In February, YouGov shares fell 45% from 71 pence to 34 pence, following the company's prediction that revenue for the six months to the end of January would fall short of expectations. At the time, the Board acknowledged that profitability for 2009 will be 'significantly below market expectations', as financial services clients reduce research budgets because of the credit crunch.
'My job is to ensure that we cut our cloth accordingly,' Britton stated. 'While this may require some realignment, with both a strong product and strong ad hoc business, I am confident that YouGov will weather the recession.'
While Britton could not confirm whether the company is currently recruiting, he explained that last week's announcement that former marcus evans Director Adele Gritten had joined as Head of the Financial Services Consulting team, was as the direct result of the departure of Dr Steve Nuttall who has emigrated.
Britton said he is aiming to complete the business review within the next 2-3 weeks, but was unable to comment on whether the findings would affect the rest of the group.
Today, shares in the firm were down 2% to 35 pence, compared with a price of 148.5 pence a year ago.
Web site: www.yougov.co.uk .
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