Troubled business group the CBI has indicated it will cut jobs after losing a major portion of its membership.
Although it did not say exactly how many jobs would be lost, it revealed it needed to cut its wage bill by a third to combat falling revenue.
Earlier this week Rain Newton-Smith, CBI director general, released an ambitious “programme of change” aimed at turning around the group, which has been dogged by accusations of sexual misconduct, harassment and rape.
The CBI employs around 330 people. In a statement, it said: “In light of the recent loss of some of our revenue, the CBI has to take some difficult decisions. We need to reduce our salary cost base by a third among other likely cost-saving measures going forward.
“With our prospectus for a renewed CBI now published, we will work with our staff and members on our core mission to help UK business succeed.
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“We believe there is a strong basis for our members to continue to back us at our EGM [extraordinary general meeting] next week.”
The EGM on 6 June will discuss the renewal plans, and members have been asked to signal whether they wish to remain with the body based on its intentions for change.
Household names such as John Lewis and BMW have cancelled their CBI membership, while others – such as Tesco and Sainsbury’s – have paused association with the organisation. The government has also paused any joint workings with the CBI.
Newton-Smith told the BBC this week that the EGM vote will be “critical” to the survival of the CBI, whose president Brian McBride also indicated he would step down earlier than planned as part of an overhaul of its leadership.
“I don’t think anyone has given up on us yet,” she told the BBC.
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“I wouldn’t be here to lead the organisation if I thought everyone had given up on what we represent. What is clear is that we need to show that we have our members behind us … that they believe in this programme of change that we are setting out.”
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