IMG's 7 Percent Solution

IMG has laid off more than 200 employees worldwide in the last few weeks, a reduction of more than 5 percent of its work force, in an effort to pare costs and position the company for growth.

The job cuts have been made in virtually every division of the sports, media and entertainment company in every region of the world. The affected employees have been notified individually in the last three weeks, according to multiple sources, and some may still be getting notice in the next few weeks.

Sources said the total number of layoffs at IMG, which had employed about 3,100 worldwide before the job cuts, were in the range of 200 to 300 people. One source said the layoffs represented about 7 percent of the company’s work force. IMG has 60 offices in 30 countries.

“We have taken out 4 percent of the costs of running the company,” said IMG spokesman Jim Gallagher. “A very small percentage of our total global work force is affected by this program.”

Gallagher wouldn’t provide a specific number of layoffs or respond to questions about how many people were laid off in individual IMG divisions, such as golf, tennis and media. But he said IMG had not closed any offices.

“As any smart company does from time to time, we are examining costs, trimming where necessary and exiting a few non-strategic businesses,” Gallagher said.

In late November, IMG sold television production companies Tiger Aspect, Darlow Smithson and Tigress to Dutch production company Endemol. Chris Davis, IMG executive vice president and chief financial officer, was quoted as saying those companies were not synergistic with IMG’s core business. Additionally, IMG shuttered Web site TennisWeek.com last week.

“This is not a program of layoffs,” Gallagher said. “This is a program of strategically reallocating and redeploying resources to long-term growth opportunities.”

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