Telegraaf to cut 425 jobs as ad revenue falls
By Leah McBride Mensching, Friday 15 August 2008 at 19:00 :: Labor & Employment :: #2115 :: rss
Telegraaf Media Groep will cut at least 425 jobs and other “more drastic” cost reductions, in an attempt to offset low advertising revenue and higher energy and wage costs, Reuters reported Friday.
The Netherlands' largest newspaper publisher announced Friday that due to an impairment charge and low ad revenues, it has recorded a net loss in the first half of €175.5 million. In the first half of 2007, it saw a profit of €39.7 million.
The job cuts will come from attrition and perhaps layoffs, Reuters reported.
“In terms of macro economic trends, it is clear that all signals are red,” TMG said in a statement, according to Reuters.
In the second half, TMG stated it expects continuing advertising revenue difficulties. The publisher of De Telegraaf, the Netherlands' biggest selling daily, will also take second half restructuring costs into account, Reuters reported.
Sales in the first half were down 1.4 percent, to €360 million, with an EBITA margin down to 7.3 percent, from 8.7 percent, according to Reuters. TMG is aiming to reach a 15 percent EBITA margin, and will need to save €40 million to €50 million a year to do so, the publisher stated.
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