The CBI has warned staff of a wave of job cuts as the scandal-hit British lobby group prepares to cut its wage bill by a third after members quit en masse over allegations of serious sexual misconduct.
The organization informed employees of the move during an internal meeting on Thursday and will first work to make reductions through voluntary departures, according to people familiar with the matter.
The announcement came a day after the CBI launched an effort to regain the trust of members with a “change agenda”, which sets out an overhaul of its culture, governance and lobbying activities.
At the extraordinary general meeting on June 6, CCR members, which include many FTSE 100 companies, will vote on whether he retains their confidence.
The band’s future was thrown into doubt by the scandal sparked by allegations reported by The Guardian newspaper of serious misconduct, including two allegations of rape, which led to a police investigation.
The allegations prompted more than 65 members – including insurer Aviva, bank NatWest and retailer John Lewis – to publicly cancel or pause their membership in April, dealing a blow to the group’s finances.
Member subscriptions account for £22m of the CBI’s £25m annual revenue, according to its latest report. accounts.
Even if the CBI wins support from members next week and regains access to ministers, who cut off engagement with the group, it will have to lay off some of its nearly 300 staff in order to stay afloat.
Following Thursday’s announcement, first reported by the Guardian, the CBI said: “In light of the recent loss of some of our income, the CBI must make some difficult decisions. We need to reduce our salary cost base by a third, among other measures that could reduce costs in the future. »
The group – whose board has received restructuring advice in recent days – said it would become “a smaller and more focused organisation”. He added that he believed the ‘change agenda’ provided ‘a strong foundation for our members to continue to support us at our EGM’.
However, the publication of the “prospectus” on Wednesday did not elicit a public show of support from companies or the government.
“The CBI hasn’t worked for months and no one has noticed a difference,” said an executive at a former member. “That’s the danger for them.”