STW to shed 30 businesses and remove ‘dead wood’ as more details emerge of shake-up
STW Group has revealed it will reduce its number of businesses from 80 to 50 as more details emerged of the restructure and consolidation underway at the company.
Chief executive Mike Connaghan spelt out the need to build “bigger and better” businesses after admitting shareholders has become concerned at the unwieldy structure of the organisation which meant it was prone to “nasty surprises”.
He told an investor briefing it was time to “clean up the garden of STW” and create a structure that ensured a larger group of senior executives had greater oversight of its business.
Connaghan added that the process of consolidation “will be bruising” and admitted it will lead to job losses and the removal of “dead wood”.
The CEO’s announcement makes it pretty clear there will be plenty of “dead wood” job losses at the top of STW, and jettisoning of non-performing businesses. There will be blood.
With team Whitey nowhere to be seen + couple acqusition hungry groups lurking around, Bohemia will be the next inde to get bought out.
Typically with restructures like these the majority of the redundancies will be general staff with plenty of management side movements removing them from the areas they’ve screwed up into others they can cause less damage with title promotion of course. On top of that several gardening leaves to pop back up in six months time to inject new thinking and a fresh approach. Sack and merge, Typical big agency group reaction to fixing inherent big agency group problems.
Two Photons in one lifetime, I cannot believe it.
Strike me Down….you took the words right out of my mouth #orfrommyfingersonthekeyboard #eneromarktwo #goodluckSTWers
Winning.
Makes sense, so many STW companies are similar and end up all scratching around and beating each other up for the same bucks.
Any dead wood on the board?
http://www.stwgroup.com.au/board-of-directors
Firmly in control
So they cut staff and companies but will they cut the largesse like Cannes Lions award entries and sending delegates from STW companies? Sending people to that is around 10-15k per person. We’ll know very shortly!
Now it does seem to me that the conglomerate business model continues to eat its creators. Sadly it eats the workers as well.
“The Board oversees the execution of the group’s strategy. They are entrusted with delivering results and growth for our shareholders, and play an important role in ensuring that the STW Group’s corporate governance remains best practice.”
Not delivering or entrusting the best results for our clients.
No wonder independent agencies are having some time in the sun.
Team Whitey hasn’t been seen since he began the head of agencies role. Jobs for the boys ehhh!