CBI to shrink workforce after losing dozens of members, reports say

The scandal-hit business group is reportedly eyeing up a ‘smaller and refocused organisation’, with plans to cut its wage bill by a third.

Anna Wise
Thursday 01 June 2023 16:47 BST
The CBI is set to shrink its workforce in a bid to drastically reduce costs, according to reports (Alamy/PA)
The CBI is set to shrink its workforce in a bid to drastically reduce costs, according to reports (Alamy/PA)

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The Confederation of British Industry (CBI) is set to shrink its workforce in a bid to drastically reduce costs, according to reports.

The scandal-hit business group is eyeing up a “smaller and refocused organisation in the future”, with plans to cut its wage bill by a third, the Guardian reported.

It could result in a wave of job cuts within the 300-strong firm, with employees reportedly told that it will aim to reduce roles through voluntary redundancies first.

The trade group has faced serious allegations of sexual harassment within the organisation, including from two women who claimed they were raped by colleagues at the CBI.

Dozens of the UK’s biggest companies chose to pause or suspend their memberships after the allegations emerged.

It led the group to look at ways to cut costs after the loss of fee-paying members, according to the reports.

Following an independent review, the CBI found that its culture “under-prioritised people management skills”, but rejected blanket descriptions of it as “toxic” or “misogynistic”.

On Wednesday it set out a plan for “renewal” and said it was speeding up its search for a new president and refreshed board.

It comes ahead of a crunch confidence vote next week where members will be asked: “Do the changes we have made, and the commitments we have set out, to reform our governance, culture and purpose give you the confidence you need to support the CBI?”

The vote needs to get more than 50% of members’ votes to pass. Each member gets one vote.

However, companies which were part of the recent exodus that forced the group to set out a new future told the PA news agency they have not received invitations to next week’s meeting.

The CBI said current members, including those who have suspended their memberships, are invited to the meeting, but those who resigned are not.

The CBI was approached for further comment.

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