After lowering its costs by £650 million, in part by eliminating about 4,000 jobs, Pearson announced Friday that it intends to cut another £300 million in expenses by the end of 2019. In addition, the publishing giant said it was reviewing its options for its U.S. K-12 courseware group, options which include the possible sale of the company.
The largest parts of the new costs reductions will be focused on general and administrative expenses and in North America, Pearson said.
The company said it was reviewing its K-12 courseware holdings because of "the slow pace of digital adoption in basal courseware, high capital intensity and a challenging competitive and market environment." While schools have been slow to add more digital products, Pearson has moved aggressively to expand its digital offerings in the higher education and assessment markets.
News of another round of reductions came as Pearson said revenue in the first quarter met projections.
Pearson said profits at Penguin Random House were flat in the first quarter compared to the first period of 2016, and were "in line with our expectations for a broadly level publishing performance" for the year. Pearson reiterated that it is in “active negotiations” with Bertelsmann with a view to selling its 47% stake in PRH, or recapitalizing the business and extracting a dividend.