European broadcaster Modern Times Group is to axe around 300 jobs as it launches a “restructuring programme”.
Furthermore, MTG said the restructuring would lead to “the impairment of content and other assets”, as the firm realigns to “increase efficiency levels across the business”.
Net restructuring charges will amount to around SEK700 million and be charged against the firm’s third quarter financial results as a “non-recurring item”. Around 60% of this will be related the redundancies, with impairment changes accounting for the rest.
MTG said the restructure would result in annual savings of approximately SEK600 million, and would have full effect from 2017.
“We started on this journey to transform the group in order to drive and shape the fast moving changes in consumer behaviour and the video entertainment environment,” said Jørgen Madsen Lindemann, MTG’s president and CEO (pictured).
“We want to be able to continue to invest in our successful existing operations and exciting new businesses, in order to secure our future profitable growth, and that requires accelerated changes in our current structure.”
The job cuts follow a management restructure in May, that saw Anders Jensen installed as CEO of MTG Sweden, Kim Poder as CEO of MTG Denmark and Trygve Rønningen as CEO of MTG Norway. New chiefs were also installed at SVOD service Viably and the Prima TV joint venture in the Czech Republic.
“Today’s announcement follows the management changes we made in May, and local leadership teams are now adjusting their organisations accordingly,” said Lindemann.
“The decisions and actions that we are taking are difficult because valued colleagues will leave the group, but they are necessary and we are doing all that we can to assist those affected by these changes.”