On Monday, April 28, just days before the new CEO was to take up his post, Serco gave an unexpected profit warning. Unsurprisingly, the next day, shares in the company plummeted by 19%, and there is press speculation about a rights issue. Serco had already set expectations for lower organic revenue growth and profitability in 2014 when the latest profit warning came on April 28. At the end of 2013 the company reported a margin of 5.6%, which was a 68 basis point decrease compared with the prior year. The company is already restructuring, having reported related costs of circa £15m in 2013. Workforce reduction is also on-going. It reduced its workforce by 400 in 2013.