The Confederation of British Industry (CBI) has warned its staff of job cuts as the organisation aims to cut payroll spending by a third amid dwindling subscriptions. The move follows the departure of over 65 members, including Aviva and NatWest, in the wake of allegations of serious sexual misconduct, including rape. The group has urged members to vote to maintain their trust at an extraordinary general meeting on 6 June. Even if the CBI regains membership backing, it will need to cut staff to survive. Annual revenue at the group is £25m ($35m), with £22m coming from subscriptions.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
The CBI has warned staff of a wave of job cuts as the scandal-hit British trade lobby group prepares to slash its payroll bill by a third after members quit in droves over allegations of serious sexual misconduct.
The organization briefed employees about the move in an internal meeting on Thursday and will aim to cut voluntary layoffs sooner, according to people familiar with the matter.
The announcement came a day after the CBI launched an effort to regain the trust of members with an “agenda for change”, which included an overhaul of its culture, governance and lobbying activities.
At an extraordinary general meeting on June 6, CBI extension members, which include many FTSE 100 companies, will vote on whether to maintain their trust.
The group’s future has been thrown into doubt by the scandal sparked by claims reported by the Guardian newspaper of serious misconduct, including two rape charges, which prompted a police investigation.
The allegations prompted more than 65 members – including insurer Aviva, bank NatWest and retailer John Lewis – to publicly cancel or suspend your subscription in April, dealing a major blow to the group’s finances.
Member subscriptions account for £22m of the CBI’s £25m annual revenue, according to its most recent accounts.
Even if the CBI wins backing from members next week and regains access to ministers, who have broken off engagement with the group, it will have to lay off some of its nearly 300 staff to stay afloat.
Following Thursday’s announcement, first reported by the Guardian, the CBI said: “In light of the recent loss of some of our revenue, the CBI has some tough decisions to make. We need to reduce our wage cost base by a third among other likely cost-saving measures going forward.”
The group – whose board received restructuring advice in recent days – said it would become “a smaller, refocused organisation”. He added that he believes the “program for change” provides “a strong foundation for our members to continue to support us during our EGM.”
However, the publication of the “prospectus” on Wednesday failed to elicit a public show of support from business or the government.
“The CBI hasn’t been running for months and no one has noticed any difference,” said an ex-member executive. “This is the danger for them.”
https://www.ft.com/content/4d200aa3-f1ed-4fd7-9730-97e2bf5e7278
—————————————————-