CBI plans job cuts as it struggles to survive after scandals

New CEO Rain Newton-Smith asked members to vote on proposals aimed at saving the CBI. Photo: Darren Staples/Bloomberg

The Confederation of British Industry (CBI) is preparing to cut its workforce as it struggles to survive after a series of sexual harassment scandals.

The lobby group will begin layoff consultations Friday as part of plans to cut its payroll by a third after a massive exodus of members hit its finances hard.

At Thursday's meeting, CBI executives told 300 CBI employees that initially they will seek job cuts. voluntary layoffs program.

This comes as CBI members prepare to vote at next week's emergency general meeting on a single vote of confidence in the lobbying group.

Earlier this week, Rain Newton-Smith, the new CEO of CBI, submitted proposals. to members designed to prevent insolvency, limit job cuts and prevent further instances of sexual harassment.

Members will be asked if the changes, which include a reshuffle of the board of directors and a new committee on people and culture, will “give you confidence, necessary to support the CBI.”

How the CBI crisis unfolded

The future of the organization has been thrown into question following recent allegations of inappropriate touching by managers and two allegations of rape.

An independent review by law firm Fox Williams found that the CBI failed to fire «toxic» sexual predators and lost the trust of female employees. The City of London Police are currently investigating individual allegations.

The scandal prompted an exodus of companies from a female-led lobbying group led by NatWest, John Lewis and Aviva.

A CBI spokesman said: In light of the recent loss of some of our income, the CBI has some difficult decisions to make. We need to reduce our payroll cost base by a third among other likely cost-cutting measures going forward.

“Going forward, our organization will be smaller and refocused. Now that our updated CBI prospectus has been published, we will work with our staff and members on our core mission to help UK businesses succeed.

“We believe our members have a solid foundation to continue supporting us at an extraordinary general meeting.”