Bertelsmann introduces drastic cost-cutting measures
The Gütersloh-based media group Bertelmann wants to cut costs immensely. As Group CEO Hartmut Ostrowski told the FAZ, he wants to save several hundred million euros.
The Gütersloh-based media group Bertelmann wants to cut costs immensely. As Group CEO Hartmut Ostrowski told the FAZ, he wants to save several hundred million euros.
The measures affect program costs in the television division RTL Group as well as the pricing policy at the book publisher Random House. Ostrowski also wants to cut personnel costs, for example in the printing and services division Arvato. Among other things, the Bertelsmann CEO named the temporary waiver of vacation and Christmas bonuses as well as extended working hours as possible instruments. Like his Executive Board colleagues, Ostrowski had waived all bonus payments for 2009 and thus more than 50 percent of his income.
Europe's largest media group, which will present its quarterly figures for the first quarter of 2009 on May 12, will not slip into the red operationally in the current year, according to Ostrowski. Last year, Bertelsmann's revenues fell by around 14 percent to 16.1 billion euros.
The measures affect program costs in the television division RTL Group as well as the pricing policy at the book publisher Random House. Ostrowski also wants to cut personnel costs, for example in the printing and services division Arvato. Among other things, the Bertelsmann CEO named the temporary waiver of vacation and Christmas bonuses as well as extended working hours as possible instruments. Like his Executive Board colleagues, Ostrowski had waived all bonus payments for 2009 and thus more than 50 percent of his income.
Europe's largest media group, which will present its quarterly figures for the first quarter of 2009 on May 12, will not slip into the red operationally in the current year, according to Ostrowski. Last year, Bertelsmann's revenues fell by around 14 percent to 16.1 billion euros.
(Image: Keystone)
