RTL Germany plans to cut approximately 600 jobs in response to declining TV advertising revenue and the expansion of its streaming business. The management has decided to “align the company and cost structures even more specifically with the streaming business,” the company announced on Tuesday. “As part of this focus,” the 600 positions will be eliminated across all RTL Germany locations and business units. The job cuts will be implemented “in the most socially responsible way possible through a special severance program and early retirement options.”
The company stated that the goal is to “future-proof the business in light of the accelerated transformation of the media industry and current economic challenges, and to align it with the competition from the major US streaming services.” RTL Germany CEO Stephan Schmitter explained that these steps are “profound, but absolutely necessary and will sustainably strengthen RTL Germany’s position in the face of structural and economic challenges.”
The German Journalists’ Association (DJV) expressed its shock at the planned job cuts. “This is a catastrophe for our colleagues at RTL and its subsidiaries,” said DJV Federal Chairman Mika Beuster. He added that there are fears journalistic quality will suffer: “It will likely be extremely difficult for the newsrooms to maintain their current standards with even fewer staff.”
Beuster described the terms negotiated between employee representatives and management as a “ray of hope.” According to the agreement, layoffs are to be avoided as far as possible, and the existing social plan is to be significantly expanded. Among other things, employees who leave voluntarily are to receive a bonus of up to €50,000, depending on their length of service, Beuster explained.
AFP – Translated by Blackout News