Scandinavian television operator Modern Times Group (MTG) is to axe approximately 300 positions across Sweden, Norway, Denmark and the UK.
The restructure is expected to cost MTG approximately SEK 700 million (US$84.4 million) as part of an effort to drive the company’s digital growth while enabling reinvestment into MTG’s existing businesses, the company’s CEO and president Jørgen Madsen Lindemann said in a statement.
The revamped structure is expected to increase efficiency levels across the business while generating savings to counterbalance “significant adverse currency effects.”
The reorganization of finances is expected to generate an annual savings of approximately SEK 600 million (US$72.3 million), the majority of which will be reinvested into the company’s “ongoing transformation into a broad-based video entertainment company.” The majority of savings will take full effect in 2017, the company said.
“We started on this journey to transform the Group, in order to drive and shape the fast-moving changes in consumer behavior and the video entertainment environment,” said Lindemann in the statement.
“We want to be able to continue to invest in our successful existing operations and exciting new businesses, in order to secure our future profitable growth, and that requires accelerated changes in our current structure,” he added.