This autumn Aftenposten has worked on identifying actions that can improve Aftenposten’s long term profitability. Today the Board of Directors in Aftenposten has discussed the project group’s proposals to improve the profitability in the company. A final decision regarding these actions will be made at the Board Meeting of Aftenposten on December 9th.
The proposed actions can be summarized as follows:
The Aftenposten Group has a profitability improvement target of additional NOK 200 million, of which approx. NOK 160 million is due to cost reductions. The actions will provide a profitability improvement in 2003 of NOK 80-90 million. In addition, the existing program will entail an improvement in profitability of NOK 30-40 million. The profitability improvement for 2003 is based on figures before inflation. The main part of the new actions will be concluded within the end of 2004. The program involves a staff reduction of 100 man-years, and will lead to up to NOK 70 million in restructuring costs. The staff reductions will be carried through by the use of “golden handshakes” and early retirements. Increased efficiency and modernization in the entire organization as a result of rational production and improved utilization of technology make these staff reductions possible.
The multimedia strategy of Aftenposten will be subject of re-evaluation.
The proposal involves a move from the premises in Akersgt. 51 to a more suitable location.
The most attractive alternatives are to expand the tenancy agreement in the VG house from three to four floors in combination with Akersgt. 34/46 or a move to “Postgirobygget”. Both alternatives will reduce the company’s rental costs considerably.
There will not be made any changes in the product structure of Aftenposten in this round. There will be an evaluation to determine whether one of the sections of the morning edition should be changed into tabloid format.
Contact person:
Managing Director Olav Mugaas, Aftenposten: Tel. +47 22863512
Oslo, Desember 2nd, 2002
Trond Berger
CFO