ProSiebenSat.1 to cut 400 roles as part of entertainment ‘realignment’

Bert Habets

German broadcast group ProSiebenSat.1 is cutting around 400 roles as part of its “realignment” to a digital-first business.

These cuts amount to around 10% of its workforce, with a total of 30% anticipated to be departing from across the organisation in the coming months, as exclusively revealed by TBI in June.

Bert Habets, group CEO, said that the cuts are “a difficult but entrepreneurially necessary decision”.

The majority of lay-offs will come from the entertainment segment and are being made to “achieve a more efficient structure, a competitive cost base, and processes clearly geared to digital transformation,” said the company.

The job cuts will be made through a voluntary redundancy program in order to avoid compulsory departures “as far as possible,” with the decision agreed upon in talks with employee representatives.

ProSiebenSat.1 reported a 7% decline in annual revenue in May, which came in at €4.1bn ($4.41bn), while ad revenue in Q4 was down 12% year on year. Sources previously told TBI that there could also be cuts to programming, with show budgets being slashed and some series set to be cancelled altogether.

“Challening economic environment”

The cuts come as the company looks to refocus its efforts around entertainment and Joyn – fully acquired from Warner Bros. Discovery earlier this year – under former RTL Group boss Habets, who became CEO in November after Rainer Beaujean exited.

Habets also expanded his remit last month, taking on the remit of Wolfgang Link, CEO at its Seven.One Entertainment Group, who is leaving the company after almost 15 years.

Commenting on the lay-offs, Habets said: “In a constantly changing media industry, it is only logical that we have realigned our strategy and are constantly questioning our own positioning.

“In addition, we have to operate in an extremely challenging economic environment for the fourth year in a row. It is therefore imperative that we significantly reduce our material and personnel costs. The job cuts are a difficult but entrepreneurially necessary decision, so that ProSiebenSat.1 can increase its earning power and grow sustainably and healthily again.”