-Metro Intl to reduce headquarter costs by EUR2.8m in 2011.
NORDIC BUSINESS REPORT-December 30, 2010--Metro Intl to reduce headquarter costs by EUR2.8m in 2011(C)2010 M2 COMMUNICATIONS http://www.m2.com
30 December 2010 - Stockholm-listed free-daily publisher Metro International SA (STO: MTRO SDB A) plans to reduce its headquarters costs by EUR2.8m in 2011 and consequently downsize the executive management team.
Metro expects the net costs for its headquarters to be around EUR14m in 2011, versus EUR16.8m in 2010, the group said Wednesday.
The cost savings will result in the executive management team being reduced to six from nine people. The positions to be affected are the operational executive vice presidents (EVP) for Asia, northern and southern Europe. Their responsibilities will be taken over by Metro's CEO, Per Mikael Jensen, and CFO Anders Kronborg.
In the past few years, Metro has either sold its unprofitable operations, turned them into franchisees or joint ventures, or closed them. This has led to better performance in the group, which has in turn reduced the need of operational support from the headquarters, Metro said, explaining the move.
"We are dedicated to the task to continue to reduce headquarter cost further in the future," Jensen said.
(EUR1 = USD1.3)
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