Flop of the week: NZZ: New CEO sweeps with an iron broom

NZZ AG, the parent company of the NZZ Group, is facing "a comprehensive restructuring and cost-cutting program" due to declining revenues and poor economic forecasts. This will also involve job cuts through natural fluctuation, early retirement and the elimination of vacant positions, according to a communiqué issued on Tuesday. When asked about the exact extent of the reduction, the new CEO Polo Stäheli was not yet able to provide any information. However, the total number of jobs to be cut will be "in the lower double-digit range", he said. All areas will be scoured for savings potential immediately in order to be able to present the Board of Directors with a budget for 2009 that is as close to reality as possible. "We don't just want to react, but also anticipate what we might have to face next year," said Stäheli. At first glance, the measures appear somewhat hasty, as the NZZ titles show a stable advertising volume in 2008. This is deceptive, says Stäheli, as the VSW statistics do not include financial advertisements. "And we are quite exposed in that respect." The CEO goes on to say that he was not surprised that he had to make cuts at the NZZ as almost his first official act. After all, he had already been observing the market from Bern. "But I was surprised by the extent of the slump this fall." For the NZZ, on the other hand, it is probably new "to react early instead of waiting until it is too late".