ProSiebenSat.1 to axe 400 jobs in cost-cutting drive

Germany’s ProSiebenSat.1 Group is to cut around 400 posts in a fresh cost-cutting drive, as part of what it styles as the next step in its realignment towards digital and its Joyn streaming platform.

The company said that it aimed to create a more efficient structure, a competitive cost base, and processes clearly geared to digital transformation.

ProSiebenSat.1 said the restructuring was necessary to continue investing consistently in content and digital offerings.

The cuts will affect around 400 full-time positions, with a voluntary redundancy programme to avoid compulsory redundancies as far as possible – something ProSiebenSat.1 said had already been agreed with employee representatives.

The broadcaster said the benefits would impact in the fourth quarter of this year and are expected to amount to a low double-digit million euro amount for 2023. The company has already taken this into account in the financial outlook for full-year 2023.

The full cost effect for 2024 will amount to a mid double-digit million euro amount, it 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,” said Bert Habets, Group CEO of ProSiebenSat.1 Media.

“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.”

The future of ProSiebenSat.1 has been subject to ongoing speculation, with the company playing down the prospect of a pan-European merger with its leading shareholder MediaForEurope (MFE) in the wake of Silvio Berlusconi’s death and reports of renewed talks with pay TV operator Sky over a potential combination of their businesses.