By Kathy Gordon
LONDON--Education publisher Pearson PLC (PSON.LN) said Thursday
it will restructure its top management to focus on core educational
categories and geographies as part of new Chief Executive John
Fallon's GBP150 million reorganization of the business.
The changes will see the departure of Will Ethridge, a 15-year
veteran of the business, who will step down as chief executive of
Pearson's North America division at the end of the year.
The shake-up comes three months after Pearson reported a slump
in profits after closing a U.K. business and warning of tough
market conditions and structural industry change.
At the time Mr. Fallon, who took up his post in January,
outlined plans to aggressively focus on digital publishing and
educational services as demand for hard-copy textbooks declines,
and on lucrative emerging markets where the shift to digital is
fast and under-penetrated.
Pearson last year agreed to hive off its book publishing
business Penguin into a joint venture with Random House, leaving it
with a predominantly educational business, although it also owns
the Financial Times newspaper and generates around 9% of sales
through the paper and related news products.
The company said it will split its operations into three
categories reflecting the stages of education - school, higher
education and professional - and three regions - North America
where it generates over half its revenue, core markets such as the
U.K. where the company is already established, and growth markets
such as China and Latin America.
Mr. Fallon said the new organization structure "is designed to
make Pearson more digital, more services-oriented, more focused on
emerging economies and more accountable for learning outcomes. This
is a significant change in the way we run the company that will
take time and sustained commitment, but it is one we must make to
be able to accelerate the execution of our global education
strategy."
Chairman Glen Moreno said of Mr.Ethridge's departure: "North
American Education has been a powerhouse for Pearson for many years
and Will has been at the heart of its success. He has developed a
strong team of executives and ensured they are ready to take on
these new responsibilities."
Ethridge is the second long-serving executive to leave following
the change of top leadership at Pearson, after Rona Fairhead, chief
exceutive of the Financial Times Group, left the board in
April.
Pearson shares opened 1.3% lower at 1249 pence, in a broadly
lower London market.
Write to Kathy Gordon at kathy.gordon@dowjones.com; Twitter:
@DJKathyGordon
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