Corbis Layoff Memo

Below is the text of a memo to Corbis staff from incoming CEO Gary Shenk. Related story on PDNOnline: Corbis Lays Off 160, Abandons Assignment Division

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From: Gary Shenk
Sent: Thursday, June 28, 2007 4:37 PM
To: Corbis Worldwide
Subject: Building a More Competitive Corbis

As part of transforming Corbis into a profitable company, we today are undertaking a significant restructuring and making changes in the lines of business that we serve.  As a result, we are planning to reduce our workforce by approximately 160 positions in 17 offices around the world, affecting nearly every function at almost every level. 

We also are announcing that we will be focusing on two core lines of business – Images (stills and footage) and Rights Services.  We are exiting Artist Representation (Assignment), and we will be selling the Media Management business.

The changes we are planning to make have already been communicated to the affected employees and photographers.

As I indicated earlier this year, we will intensify our focus on profitability and shareholder value. The changes we are announcing today are the outcome of a comprehensive efficiency review that the Executive Team conducted over the past two months in order to help us significantly lower our cost of operations. As a result of today’s actions, we plan to achieve our goal of reducing staff by 15%.

Managers, social partners and human resources across the company will be meeting with their teams and concerned employees to explain the changes in more detail.

I recognize this is a tough moment for Corbis. But this is an essential step in transforming us into a profitable, winning company.  And it reshapes us into a more focused, competitive company that can provide better opportunities for its employees as we become the strongest brand and the most rewarding place to work in our industry.

Gary