GES Completes Staff Cutbacks

Diane Taylor -- Tradeshow Week, 5/2/2008 11:42:00 AM

GES Exposition Services announced cost-saving employee cutbacks April 25, when parent company Viad held a conference call on its first-quarter earnings.  

At press time, GES Public Relations Manager Detra Page said the tradeshow general service contracting firm had completed all planned job eliminations. Page said the company would not announce specifics about its cutbacks, other than to say the affected jobs were “back-office positions, including a consolidation of accounting positions, not the jobs of those individuals who work directly with show managers.”

On the call, GES President and CEO Kevin Rabbitt explained the cutbacks that will save the company “seven figures” are necessary due to “uncertain economic times,” adding he remained “bullish” on the overall outlook for GES in 2008.



During a question-and-answer session, listeners to the conference call zeroed in on GES’ loss of two large tradeshows, the Natl. Assn. of Broadcasters’ NAB and NPE – the Intl. Plastics Showcase.

Referring to NPE, Rabbitt said, “We are told we will have the opportunity to bid again on that every-three-year business. In the meantime, we are working to generate more new business to replace what has been lost.”
Rabbitt also reminded listeners, “We win more than we lose, and in recent months, a number of new clients have chosen GES.” 

Examples of new clients he gave included the Chicago Auto Show, Dallas Market Center, American Foundry Society, Java One and the Natl. Retail Federation.

Page noted that the company continued to examine the possibility of placing some of the employees affected by cutbacks in other jobs within GES for which they are qualified. The GES Web site continues to list several job openings in Las Vegas, and Page said the company would keep filling some specific jobs.

Because job cutbacks include severance payments, Rabbitt said that expected cost savings would not affect the bottom line until the third and fourth quarters.  

In other financial news, GES said it would be adjusting its petroleum surcharges to reflect an increase in fuel costs starting in the third quarter.