Discovery Networks earns good money, but this morning notifies the American-owned media group that they will implement extensive changes to the business in Norway in the coming weeks.
the intention should be to equip the company for the future, and release resources to invest in more content and new services.
– We run a continuous effort to rig us for the future. And as part of this work we will in the coming weeks to make extensive changes to the entire organization, says Harald Stromme, Head of TV Norge and Discovery Networks in a statement.
Employees were told the town hall meeting
Thus, the downsizing.
– it involves staff reduction and centralization of jobs in some areas, while we will strengthen the organization and expertise in other areas, where the growth potential and opportunities are great. Especially, we have invested heavily in sports and the digital. The funds we release, will allow us to grow and develop further in these areas, says Stromme.
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Around 35 FTEs will be affected by the downsizing, according to Discovery. The employees received message at a town hall meeting earlier today.
– This is a decision we do not take with a light heart. But it is absolutely necessary to take steps to enable the company to continue to be a leader in the commercial TV market in the future. Television industry as we know it, is changing. All history shows that those companies that have the ability and willingness to change, succeed best through such decisive phases, said Stromme.
There are currently 182 employees in Discovery, according to government figures, meaning that 20 percent of the workforce is to be cut.
Stromme and Discovery during the last year created headlines in the media. Last year bought Discovery Olympic rights for the period 2018 to 2024 over 11 billion Norwegian kroner. Before Christmas snogging media group and thumbed up 2.4 billion for the rights to the Premier League in six seasons. In February, the break in the negotiations between Telenor-owned Canal Digital and Discovery about distributing media group’s television channel. Channels that TVNorge, Max, Five and Eurosport went black at 2.8 million and the battle lasted for ten days before the parties agreed.
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After the campaign has been able to message from CEO Harald Stromme to employees today have been that Discovery will be “reorganized”. No information on how the organizations changes will occur should have been given. For such Campaign realize it, should now use the next month to decide where in the organization it should be cut.
It is also obvious that it is not first and foremost sales would be affected hardest. Major reason is there to believe that the department is working on so-called traffic or ad management will be hit. Here one can easily envision more automated and centralized solutions along with other Discovery markets with main seat in Stockholm, Copenhagen or London. Similar processes with more centralized back-office solutions see one also consequences in other media.
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Whether it is possible to centralize the equivalent of purchasing and application remains to be seen.
Closing the Discovery in 2015 are still not, but in 2014 the company had a turnover of roughly 1.5 billion and a profit before tax of over 300 million.
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