Rank launches digital redundancy round
Restructure sees half of Gibraltar staffers asked to re-apply for jobs as Mecca COO Leon Thomas departs
The Rank Group has launched a 60-day redundancy consultation with approximately 50% of its Gibraltar-based digital staff asked to re-apply for jobs as part of a major online restructure, EGR understands.
Group director Colin Cole-Johnson and HR Director for shared services Debbie Cooper flew to Gibraltar last week to inform staff of the news, which impacts around 20 roles and is likely to result in roughly half-a-dozen being cut.
The move forms part of a streamlining of Rank’s digital business which will see teams, such as those within campaigns, product and projects, work cross-brand rather than the current ring-fenced set-up in order to reduce duplication.
As a result, Mecca digital COO Leon Thomas has left the firm with his responsibilities taken up by Adam Joseph, who currently heads up the Grosvenor brand.
EGR understands the restructure is in response to the recent underperformance of Mecca online. In its end of year 2015-16 report, published last month, Rank described Mecca’s digital results as “disappointing” and the year as “frustrating”.
“Even though we are disappointed by the performance of Mecca digital, there is a lot that we are doing and will do this year â from product to people to marketing â which we are confident will have a significant positive impact on the business,” Rank CEO Henry Birch said in the report.
Mecca digital revenues were broadly flat across the year while operating profit slumped from £14.1m in 2014-15 to £8.6m â the firm previously cited platform migrations and an increased take-up of social responsibility tools and measures as contributing factors.
The news follows a couple of senior departures from the Mecca online business. In August it was announced that Mecca digital operations director Claire Osborne had left after more than a decade at Rank.
Meanwhile, last month Mecca MD Martin Pugh was moved to Grosvenor to fill a similar role vacated by Mark Jones’ May departure, with former Spirit Pub Company COO Alan Morgan hired to succeed Pugh.
Rank declined to comment on this story.