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Intrum warns of job cull - 29/05/2009
Debt collection agency Intrum Justitia is likely to cut jobs in its UK Credit Management Services (CMS) business to halt losses in the division.
In a statement released today, Intrum said it has carried out an extensive review of its operations in the UK and concluded that the CMS business would require substantial improvements and investments in order to stop the continuing losses. Last year Intrum posted losses of over £9m in the UK and Ireland. Since the end of April it has been reviewing all CMS contracts with the aim of improving profitability.
As a result, the company has decided to reduce its operational capacity "to re-align it with the CMS client base going forward". The statement went on: "This means that the current number of roles required in Intrum Justitia's CMS business is likely to reduce, effectively putting jobs in CMS at risk of redundancy."
Intrum Justitia is now undergoing formal consultation with staff on the issue. The news follows the departure of regional manager for the UK and Ireland Chris Savage. Savage had only been with the business for a few months but resigned after an unauthorized press release was issued in the UK with false information – including the suggestion that Intrum would be recruiting 100 people this year.
Group chief executive Lars Wollung recently told Credit Today the debt purchase side of the business is performing well but CMS is pulling it down. "We’ve been working for at least four years to try and fix the problem," he said. "We’ve improved productivity and reorganized – moving the staff to one location. We’ve worked hard but have not reached the goal of profitability."
He said Intrum would be talking to its 25 major CMS clients in the UK to see what could be done. "We believe we have structural skills and advantages as the European leader. [But] the UK industry dynamic in CMS is different – clients are very focused on the commission rate rather than how much money is coming in."
from Credit Today online
wish they would sort their site out really annoys me
Debt collection agency Intrum Justitia is likely to cut jobs in its UK Credit Management Services (CMS) business to halt losses in the division.
In a statement released today, Intrum said it has carried out an extensive review of its operations in the UK and concluded that the CMS business would require substantial improvements and investments in order to stop the continuing losses. Last year Intrum posted losses of over £9m in the UK and Ireland. Since the end of April it has been reviewing all CMS contracts with the aim of improving profitability.
As a result, the company has decided to reduce its operational capacity "to re-align it with the CMS client base going forward". The statement went on: "This means that the current number of roles required in Intrum Justitia's CMS business is likely to reduce, effectively putting jobs in CMS at risk of redundancy."
Intrum Justitia is now undergoing formal consultation with staff on the issue. The news follows the departure of regional manager for the UK and Ireland Chris Savage. Savage had only been with the business for a few months but resigned after an unauthorized press release was issued in the UK with false information – including the suggestion that Intrum would be recruiting 100 people this year.
Group chief executive Lars Wollung recently told Credit Today the debt purchase side of the business is performing well but CMS is pulling it down. "We’ve been working for at least four years to try and fix the problem," he said. "We’ve improved productivity and reorganized – moving the staff to one location. We’ve worked hard but have not reached the goal of profitability."
He said Intrum would be talking to its 25 major CMS clients in the UK to see what could be done. "We believe we have structural skills and advantages as the European leader. [But] the UK industry dynamic in CMS is different – clients are very focused on the commission rate rather than how much money is coming in."
from Credit Today online
wish they would sort their site out really annoys me
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