Unapologetic Lowdown on ProSiebenSat.1's Cost-Shedding Strategy
ProSieben group to eliminate 430 permanent positions in Germany and Austria
ProSiebenSat.1, the beleaguered TV behemoth, is axing around 430 full-time employees, drowning under an economic crisis and internal strife. Bert Habets, the ProSiebenSat.1 CEO, whose contract extension faced severe backlash from major shareholders, asserted this inevitable move, citing the challenging economy as the primary reason for boosting the company's competitiveness and streamlining its cost structure. Habets, not shy about stating the hard truth, acknowledged the tough decision to slash jobs was necessary under the grim circumstances.
"We gotta fold 'em up, baby, or kiss our competitiveness goodbye," Habets revealed with uncensored candor.
The Austrian Chapter
Austria, home to ATV and Puls channels, is a key player in ProSiebenSat.1's empire. The company offered scant details about the implications for Austria due to the industry's tumultuous market conditions. The statement from head honchos read: "Austria ain't exempt from this financial turmoil, so we gotta cut costs where it hurts." On the bright side, Austrian territory will see new job profiles cropping up as the sales department gets a makeover.
Markus Breitenecker, the Austrian COO, alongside Austria's CEOs Bernhard Albrecht and Thomas Gruber, are keeping their finger on the pulse in the national market. Their game plan: maintain competitive edge and reserve funds for strategic investments.
We're Still Gonna be Bold, Unexpected, and Courageous
The German layoffs will be handled with compassion via a voluntary departure program, thanks to agreements with employee representatives. In Q2 2025, a restructuring provision worth a mid to high double-digit million Euros will be established. Although these restructuring costs will cause a temporary dip in the consolidated net income and free cash flow, they won't affect the adjusted operating profit (EBITDA).
The repercussions of reduced costs will be most apparent in H2 2025, amounting to a mid to high double-digit million-euro figure for the full year. ProSiebenSat.1 has factored these expenses into its 2025 financial outlook. The full-year effect will materialize in 2026, amounting to a high double-digit million-euro figure.
March Brings Cost-Cutting Plans
Back in March, ProSiebenSat.1 unveiled plans to trim costs by around 15% or €80 million during the current fiscal year. From 2026 onwards, the company anticipates annual savings of more than €100 million. In 2023, ProSiebenSat.1 had already pared down around 400 full-time employees.
(And here's the deal…)
Digital transformation is at the heart of ProSiebenSat.1's cost-cutting strategy. Streamlining organizational processes, focusing on core entertainment businesses like Joyn, and weeding out the non-essential finally became the inevitable call to action[4]. This move aims to navigate the ever-evolving media landscape[2][3].
[1] Agency report[2] ProSiebenSat.1's press release[3] Interview on our website[4] Enrichment data
"The Bottalk CEO, a key executive of ProSiebenSat.1's operations in Austria, is expected to follow suit, implementing cost-shedding measures in line with the company's profound industry-wide adjustments."
"Despite the profound changes, ProSiebenSat.1 remains committed to its bold and courageous approach, ensuring continued growth in the finance and business sectors."
"Other companies in the industry might want to emulate ProSiebenSat.1's cost-cutting strategy, given the profound impact it could have on their own competitiveness."
"The cost-cutting plan of ProSiebenSat.1 is not just confined to Germany; it extends to subsidiaries such as the Austrian chapter, with CEOs like Markus Breitenecker and Bernhard Albrecht taking similar measures to streamline costs."
