- Executive Board sets savings target of 75 million Euro
- Gradual cuts of up to 400 jobs over the next three years
- Sustained cost savings in changing market environments necessary, involving all divisions of G+J Germany
Hamburg, August 27, 2014 – As part of its ongoing strategic transformation, Gruner + Jahr Germany has now specified its cost and efficiency targets. Especially given declining market developments in the print business, sustainable savings of 75 million Euro are to be achieved over the next three years. This goal is the result of an analysis that began with the strategic realignment of Gruner + Jahr into a House of Content twelve months ago, and that reflects the changed market environment.
The savings are to be achieved by a significant reduction in operating and personnel costs, and will affect all divisions of Gruner + Jahr Germany. This will involve a gradual downsizing by up to 400 employees, also to be completed within the next three years. The G+J Executive Board will implement the job cuts in a socially acceptable way and in dialog with employee representatives. Gruner + Jahr will use all HR policy instruments at its disposal to find fair and reasonable solutions for all affected employees. The job cuts include not filling vacancies (turnover, retirement) as well as provisions for partial retirement, following review on a case-by-case basis. Layoffs cannot be ruled out either.
Gruner + Jahr CEO Julia Jäkel says: "Twelve months after initiating its strategic transformation, Gruner + Jahr has already achieved a great deal, and we will continue on our path. For us, this not only includes working on our magazines, making them better and better, launching new magazines and most significantly expanding our digital business – but also achieving an efficient setup. From the beginning, efficiency was an important element in our strategic realignment. Many G+J titles are outperforming the market with regard to circulation sales and ad sales. Nevertheless, we must acknowledge that conditions in the market have changed fundamentally. We firmly believe that Gruner + Jahr will emerge from this process, which is taxing for us all, as a strong company with a good future."
Twelve months after starting the transformation process, Gruner + Jahr is developing as planned. Strategic priorities were defined at the very beginning of the transformation, including the structuring of its content and organization by Communities of Interest. As part of a major product drive, existing magazines and digital offerings were revamped and numerous new print and digital products launched. The company's mostly digital growth businesses were expanded through acquisitions (most recently ADVIDEUM, TRND, VEESEO), as well as organic investments (such as ROOMIDO or TAMBINI). Strategic portfolio measures included the sale of Brown Printing in the U.S. and the specialist publisher Entertainment Media in Germany in recent months.
Future efficiency measures will be implemented step by step for each department under the lead management of Oliver Radtke, COO, and Stephan Schäfer, Chief Product Officer. The first measures will be taken in the weeks and months ahead in coordination with the employee representatives. These efficiency measures relate solely to the activities of G+J Germany. The G+J majority shareholdings of Motor Presse Stuttgart and Dresdner Druck- und Verlagshaus are not affected by these measures, nor are the business activities of G+J International. Due to the very different market situations, country-specific efficiency measures have already been established, which will continue unchanged.
Head of Corporate Communications
Phone: +49 (0) 40 / 37 03 - 31 13
Fax: +49 (0) 40 / 37 03 - 56 17