More sacked as Chime seeks savings

LORD Bell's advertising and public relations group Chime Communications has slashed 150 jobs or 15% of its workforce - almost twice the number it warned would go when it issued its first-half figures on 11 September.

Chime shares fell 10p to 116p as the company said it could see no sign of improvement in market conditions, and added that the job cuts and reduction in the amount of property it occupies would cost £6m but ultimately produce savings of £100m. Savings this year should be £2.7m.

Chime said it had lost the AA and Egg advertising accounts but had won Birds Eye across Europe and become an agency for Mars.

Bell said acquisition activity lessened in 2001 but he still expected to show organic growth of 1% and an improvement in operating margins. Overall, he still forecast double-digit growth in current-year revenues and operating profits. Preliminary results are due in March.