Pearson, the world’s largest education company, is slashing 4,000 jobs as part of a £320 million ($500 million) restructuring plan.
The job cuts make up 10% of Pearson’s workforce and will be complete by the end of the year.
The company estimates that the savings will add an extra £350 million in profit by 2017.
Pearson sold the Financial Times to Japanese news company Nikkei last year for £844 million in a drive to streamline the business and focus it on education.
Pearson’s chief executive John Fallon said in a statement:
“Our competitive performance during the last three years has been strong, but the cyclical and policy related challenges in our biggest markets have been more pronounced and persisted for longer than anticipated.
“Faced with these challenges, we are today announcing decisive plans to further integrate the business and reduce the cost base, rationalise our product development and focus on fewer, bigger opportunities.”
Pearson’s is one of the worst performing stocks in the FTSE 100. Here’s the share chart:
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