Modern Times Group (MTG) has taken the next step in its transformation by launching a restructuring programme.
According to the company, its objective is to “drive the Group’s ongoing digital transformation, fuel investments in the Group’s existing businesses, and to enable the Group to continue to generate profitable growth”.
It adds that “the new structure will realign a wide range of functions, increase efficiency levels across the business, yield savings to offset the significant adverse currency effects that the Group faces and enable reinvestment in the Group’s core business and continued digital expansion”.
In practical terms, MTG will shed a total of around 300 jobs in Sweden, Norway, Denmark and the UK, as well as impair content and other assets.
Restructuring costs will amount to around SEK700 million (€73.5 million), with redundancies accounting for 60% of the total and impairment the remaining 40%.
They will be charged against Q3 operating income as a non-reoccuring item.
Annual savings of the restructuring will amount to SEK600 million and be fully effective from 2017.
Commenting on the restructuring, Jørgen Madsen Lindeman, MTG president and CEO, said: “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. 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. Today’s announcement follows the management changes we made in May, and local leadership teams are now adjusting their organisations accordingly.
“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.”