Germany’s ProSiebenSat.1 is cutting around 400 roles, as it continues to reshape its business into a digital-first operation.
The number accounts for about 10% of its entire workforce, with the changes focused on the company’s entertainment businesses.
The plan is for a voluntary redundancy program rather than compulsory redundancies “as far as possible.” ProSiebenSat.1 said this had been “agreed on this in talks with employee representatives.”
The network said the “aim is to achieve a more efficient structure, a competitive cost base, and processes clearly geared to digital transformation.”
This follows the full acquisition of entertainment streaming service Joyn last year and more recently after a series of top-level management changes.
ProSieben has been battling a tough financial landscape. Last month it suffered a 7% year-on-year drop in revenue last month, posting €4.1B ($4.4B), It has appointed a new supervisory board in the past month and has said goodbye to long serving entertainment boss Wolfgang Link.
“In a constantly changing media industry, it is only logical that we have realigned our strategy and are constantly questioning our own positioning,” said ProSiebenSat.1 Media CEO Bert Habets. “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.”
“2023 is the year of realignment for our group. We have a clear plan with a focus on our entertainment offering and especially on Joyn. This way, we want to become the number one in the German-speaking entertainment market as a group. And we have now created an agile setup as well as headroom for investments again. This was absolutely essential as a basis for implementing our growth strategy.”