Nielsen turns to offshoring amid revenue woes
NEW YORK, UNITED STATES — Media company Nielsen Holdings is planning to ramp up its offshoring efforts to India, Mexico, Poland, and other countries to address financial difficulties.
CEO Karthik Rao revealed the move in a memo to employees, citing industry “headwinds” that have put pressure on revenues. Last year, the firm’s revenue reportedly fell $300 million short of projections.
To cut costs and boost efficiency, Nielsen will invest in new Global Capability Centers, particularly in India. The centers will focus on areas like streaming and convergent TV measurement.
While details remain unclear, the plan suggests sizable U.S. job shifts overseas. Rao admitted that some of the firm’s global workforce will be leaving Nielsen. The company already cut 9% of staff last September.
The news follows Nielsen’s signing over 30 long-term contract renewals with TV networks in recent months. However, the deals reportedly provide lower annual revenue.
Nielsen is weathering competitive threats after years of criticism over its measurement dominance. However, financial strains continue following its $16 billion leveraged buyout in 2022.
Investment bankers are also speculating that Nielsen may sell assets like Gracenote, Scarborough, and NCSolutions to pay down debt. According to an estimate by a measurement industry executive, as shared with the business magazine Ad Age, Nielsen could earn around $2 billion to $2.5 billion by selling all of its non-core assets, enough to wipe out its highest-interest tranche of bond debt.
Nielsen declined to comment on these speculations.
