Newly merged PMP says it is looking at closing three of its print sites, one each in NSW, Vic and Qld, although no details of which sites have yet been released. PMP says, “Building a sustainable business forward will undoubtedly mean the closure of some sites.
The company says no decisions have or will be made until completion of the merger, board approval and appropriate consultation with the AMWU as prescribed in its enterprise agreement.
Lorraine Cassin, AMWU print head says she believes there may be 300 staff who will lose their jobs following the closures.
Peter George, managing director, PMP says, “Any merger of such scale requires change. Some changes will be taking effect immediately, others to come.”
PMP has created its new post-merger executive team, which includes John Nichols, chief operating officer who heads the transformation programme, Geoff Stephenson, CFO reporting to Peter George, managing director.
According to PMP, the Australian business will be restructured and split into a Printing division and a Digital and Distribution division. The Printing division will be run by Adrian O’Connor, former executive general manager, IPMG print.
The Digital and Distribution division will be run by Kevin Slaven, former IPMG Group CEO, who will be responsible for Letterbox Distribution, Gordon and Gotch, Digital, and Griffin Press.
James Hannan, former IPMG COO will be responsible for operations across digital and distribution, reporting to Slaven.
The merger is expected to deliver $55m a year cost synergies, with one-off cash costs totalling $80m over the next 18 months.
PMP says, “Under the proposed changes, the majority of sales, estimators, schedulers and customer service people will not be affected. There are no changes in South Australia, Western Australia and New Zealand. We have farewelled some colleagues from positions in our head offices as well.”
Peter George says, “We will be supporting all affected staff through these changes and will continue to work closely with our customers to ensure our quality of service and products remains at the highest standard, and as we deliver ongoing value to our shareholders.”
PMP acquired 100 per cent of IPMG, issuing new shares to IPMG shareholders, who hold a maximum 37 per cent interest in PMP, while IPMG nominated two directors on the new PMP board.
PMP says through the merger it is now a billion-dollar print media and marketing company, which aims to establish a sustainable business in an industry undergoing significant change.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter