The mobile industry association GSMA is cutting around 20 percent of its staff, after it was forced to cancel its biggest event of the year. The Mobile World Congress, normally held in February in Barcelona, was cancelled this year due to the coronavirus outbreak, leading to a significant drop in revenue for the GSMA.
According to a Bloomberg report, MWC accounts for as much as 80 percent of the trade group’s annual revenue. The company has around 1,000 staff. Stephanie Lynch-Habib, the group’s chief marketing officer, confirmed the cuts to Bloomberg and said those affected had been informed.
She said the group is expecting a recovery from the outbreak to take around three years. The staff reductions are part of a wider cost-cutting plan; the GSMA has also slashed bonus payouts and pared budgets and non-staff spending by about 40 percent for the current year.
Lynch-Habib said the job cuts and other cost-saving measures had been made to ensure MWC Barcelona and related shows could return in 2021 and beyond. The event is expected to incorporate more remote participation next year, as some people will likely still want to maintain social distancing, she said.
In the meantime, the GSMA has launched a new series of online events called GSMA Thrive. The inaugural GSMA Thrive China event will take place 30 June to 02 July, to replace the usual MWC Shanghai event.
