Corbis announces lay-offs and segment closures
In a memo to all employees that carried the subject, “Building a More Competitive Corbis,” incoming CEO Gary Shenk announced the company’s plans to lay off about 160 employees from 17 Corbis offices around the globe. He also announced Corbis’s exit from two lines of business, its assignment division, called Artists Representation, and its digital asset management service, which it called Media Management.
Unlike the perennial management shuffles Corbis has been known for under the leadership of outgoing CEO, Steve Davis, this move does not effect any of the executive team at the company. According to the memo, the moves result from a “comprehensive efficiency review” conduced by top level managers upon the announcement of Shenk’s appointment to the CEO job, which goes into effect officially on July 1st.
Since his appointment, Shenk has made clear his primary goal of making Corbis a profitable company. He left no doubt that these lay-offs and division closings are intended to further that goal. “I recognize this is a tough moment for Corbis. But this is an essential step in transforming us into a profitable, winning company,” He said in the memo, adding, “As a result of today’s actions, we plan to achieve our goal of reducing staff by 15%.”
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