Nielsen could be cutting more US jobs as the company prepares to offshore more jobs to India, Mexico, and Poland. This decision follows a 9% workforce reduction in September. Nielsen is grappling with significant debt as subscribing stations cancel or change their contracts.
As first reported by AdAge, Nielsen CEO Karthik Rao acknowledged in a message to employees that the company has been working with McKinsey & Co. to develop an offshoring plan, focusing on establishing what he calls “Global Capability Centers.”
Analysts blame the Nielsen offshore on its revenue woes, estimated at $300 million below projections last year, comes as it copes with $11 billion in debt from its privatization in 2022. The riskiest portion of this debt, amounting to $2 billion, is trading at high-interest rates.
Industry experts say more countries could be added to cut costs. In the US, it can cost $120,000 annually to employ a data scientist with a master’s degree and several years experience. AdAge sources say someone with similar credentials can be hired in Ukraine for around $6,000.
Nielsen has secured more than 30 new contracts in the past six months, but these deals reportedly come at reduced costs at the guarantee of a fixed annual payment. Some deals also provide Nielsen access to a datashare.
Amid financial pressures, there is growing speculation about Nielsen divesting its non-core businesses, possibly including NCSolutions, Scarborough Research, eXelate, and Gracenote. These sales could potentially raise enough funds to alleviate some of Nielsen’s high-interest debt.
