Yell, the directories company, is cutting jobs to maintain flat earnings for the whole year, after poor half-year results. It reported a 2.7% fall in pre-tax profits to £118.3m in the six months ended September 30 today (November 11).
Yell says it will save £150m this year and a further £100m in 2009, with around 1,300 jobs lost in each period. Sales at the directories company rose by 1% to £1.02bn.
Despite the cuts, the company says it will continue to make investments in its online services, which had risen 47% in the first half of this year, compared with the same period in 2007.
The company, which depends on classified advertising for its revenue, has suffered from deteriorating house prices, consumer confidence and employment levels. Yell has particularly suffered in the UK and in other key markets such as Spain and the US.
The company’s sales team, who work across its Yell’s print and online directories in the UK, US and Spain, are reporting a nervous economic outlook among the small and medium sized businesses.