Alma Media announces conclusion of Alma Regions' statutory personnel negotiations.
M2 EQUITYBITES-November 29, 2017-Alma Media announces conclusion of Alma Regions' statutory personnel negotiations
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Media company Alma Media Oyj (HEL:ALMA) announced on Tuesday that the statutory personnel negotiations held by Alma Regions, the publisher of Alma Media's regional and local papers, have concluded.
With this conclusion, the number of employees will be reduced by 35 person-years. Most of the reductions will be implemented through severance packages or retirement solutions. Also, the number of employees to be laid off will be four at most.
According to the company, the reduction achieved through severance packages offered by Alma Regions will be 19 person-years and the reduction through retirement solutions will be nine person-years. Three persons will be transferred to other tasks. As a result of these arrangements, Alma Media will recognise an estimated expense of EUR1.0m in its result for the fourth quarter of 2017.
Also, the maximum reduction need stated at the start of the negotiations was 35 person -years. Some of the reductions will be realised at a later phase, however, no later than by autumn 2018. This solution does not involve structural changes in the newspapers. Some functions will be centralised and some will be purchased externally, the company added.
Reportedly, these reductions affect all employee groups, mainly in Tampere and Pori. The negotiations concerned the entire Regions publishing business, excluding the newspaper business in Lapland.
As a result of these negotiations, just under one third, or 10 person-years, of the reductions are directed at editorial teams, while the rest affect other employee groups. In the editorial teams, the reductions will be accomplished without lay-offs. In addition, the number of employees in the editorial teams decreased by four before the start of the negotiations through natural attrition.
Alma Media Kustannus Oy, the company publishing Alma Media Group's regional, local and town papers, is a part of the Alma Regions business unit. The printing and distribution company Alma Manu Oy is part of the same business unit.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Nov 29, 2017|
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