23rd Oct 2008 07:00
FOR IMMEDIATE RELEASE 23 October 2008 Rightmove plc Changes to organizational structure
Rightmove plc, the UK's no. 1 property search website, announces a number of changes aimed at increasing focus on its core UK property advertising business.
In the context of a challenging housing market, Rightmove will significantly increase its consumer marketing spend and make organizational changes to even better support those estate agents who are embracing the switch to on-line media.
The key changes are:
1. A reorganization of the existing estate agency sales force and customer
service teams into account management teams, each covering a region of the
country;
2. Greater focus on the national and regional house builders as well as the
growing housing association market, with less focus on more speculative
individual developments and property conversions;
3. A scaling back of the Rightmove Overseas business to reflect a decreased
demand for property in continental Europe;
4. Exiting from direct selling of banner advertising on the Aboutmyplace
mapping website reflecting the general excess capacity for on-line
generalist banner advertising;
5. A general reduction in overheads in line with the tough trading conditions
being experienced by the property industry as a whole.
The result will be a reduction in headcount of approximately 20% and a reduction in the cost base for 2009 of around ‚£5m, although Rightmove may increase its marketing spend by up to ‚£1m. Almost all the employees involved in the restructure are on one month's notice so it is anticipated that the costs arising from implementing the changes will be taken in 2008 without any material impact on 2008 profits.
These are the first redundancies that the Company has made as a result of the downturn in the UK housing market. The scale reflects the Company's view that the current challenges will continue through 2009, though not at any worse level than we have previously indicated.
Rightmove believes that these actions will allow us to maintain or increases our position as UK no.1 in terms of home hunters and keep margins at or close to current levels.
For further information please contact Graham Zacharias, Rightmove 0207 087 0700
Name and contact responsible for making this announcement:
Liz Taylor, Company Secretary, 0207 087 0700
Ends
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