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MTG Sweden restructure results in 20% cuts

The Modern Times Group has completed a restructure of its Swedish free-to-air TV operation, with about 20% of the workforce losing their jobs.

Anders_JensenThe international free and pay TV channel operator said earlier this week it was that it needed to reorganise its Swedish business in the face of wider challenges in the media business.

Commercial Swedish channels are adapting to a tough local market, with TV advertising revenues under pressure.

MTG told TBI this morning that 32 staff will lose their jobs in the wake of the reorganisation. The free TV business comprises the TV3, TV6, TV8 and TV10 broadcast channels and their associated catch-up services and has a headcount, pre-restructure, of about 150.

The job losses will be concentrated in the promo production part of the business with that activity being outsourced. Marketing and PR functions have already been merged into a new communications department.

Speaking earlier this week Anders Jensen, CEO of MTG TV Sweden and head of MTG’s free-TV operations in Scandinavia (pictured) said: “Making a decision about a notice is one of the hardest thing to do as a manager, but we do this to create the right conditions for the future. The media industry is in a period of great change. We must adapt to it, and build an organisation that is well equipped and properly adjusted going forward.”

The Stockholm-listed company said today that the restructure, which has been limited to Sweden, is now complete and no further cutbacks are planned.

As well as operating a raft of free and pay TV channels, MTG also has a strong TV production interest in the form of Nice Entertainment. It also owns UK-based distributor DRG.