Bertelsmann denies 10,000 job cuts
The Gütersloh-based media conglomerate Bertelsmann is facing massive job cuts. According to the German industry publication *Werben & Verkaufen*, the company’s management plans to cut approximately 10,000 jobs by the end of next year. This represents about ten percent of the total workforce. However, the media conglomerate denied the job cuts on Wednesday afternoon.
The Gütersloh-based media group Bertelsmann is facing massive job cuts. As reported by the German industry service Werben & Verkaufen, the Group management plans to cut around 10,000 employees by the end of next year. This is around ten percent of the total workforce. However, the media group denied the job cuts on Wednesday afternoon.
Bertelsmann employs more than 100,000 people. The Group includes the television channel RTL, the services division Arvato and the major Hamburg-based publishing house Gruner + Jahr. Bertelsmann has launched a comprehensive cost-cutting program. It covers all areas of the Group and is to be implemented by late summer. One component is "an overhead project that analyzes the management, staff and administrative structures at all levels of the Group in order to subsequently make them more efficient." CFO Thomas Rabe has announced this within the Group, W&V further reports.
The background to this measure is the current economic crisis. "This is the first time that Bertelsmann has undertaken such a comprehensive and far-reaching analysis," explained CFO Rabe. In addition to the Corporate Center in Gütersloh, the staffs of all divisions and those of the largest divisional subunits and profit centers are affected. The program is being supported by management consultants McKinsey. "To rule out capacity adjustments would be disingenuous," Rabe continued.
A few hours later, the company denied the speculation about job cuts. A Bertelsmann spokesperson was quoted by Kress.ch as saying that although job cuts had not been ruled out, no details had yet been finalized. In addition, staff cuts are not a priority in the current cost-cutting measures.
Bertelsmann employs more than 100,000 people. The Group includes the television channel RTL, the services division Arvato and the major Hamburg-based publishing house Gruner + Jahr. Bertelsmann has launched a comprehensive cost-cutting program. It covers all areas of the Group and is to be implemented by late summer. One component is "an overhead project that analyzes the management, staff and administrative structures at all levels of the Group in order to subsequently make them more efficient." CFO Thomas Rabe has announced this within the Group, W&V further reports.
The background to this measure is the current economic crisis. "This is the first time that Bertelsmann has undertaken such a comprehensive and far-reaching analysis," explained CFO Rabe. In addition to the Corporate Center in Gütersloh, the staffs of all divisions and those of the largest divisional subunits and profit centers are affected. The program is being supported by management consultants McKinsey. "To rule out capacity adjustments would be disingenuous," Rabe continued.
A few hours later, the company denied the speculation about job cuts. A Bertelsmann spokesperson was quoted by Kress.ch as saying that although job cuts had not been ruled out, no details had yet been finalized. In addition, staff cuts are not a priority in the current cost-cutting measures.
Bertelsmann director Hartmut Ostrowski recently announced cost-cutting measures of several hundred million euros. Nevertheless, Meedia.de speculates that the optimization measures could also lead to capacity adjustments, i.e. job cuts. In an interview with the FAZ, Ostrowski stated, among other things: "We have to make ourselves leaner." In circles close to the company, it is now expected that the structural changes will be completed by the end of the year.
