New and substantial improvement program in Aftenposten

Schibsted ASA (SCH) , Published 20/04/2004 15:06:43

The board of Aftenposten has today discussed an improvement program of NOK 180 million for the period 2005 to 2008. The program contains product changes, further headcount reductions, as well as new sources of revenues. The nominal cost level before the effect of the new improvement program is expected to be approx. NOK 80 million lower this year than last year. This is based on earlier communicated improvement programs.
The objective is that approx. 25% of the effects will be reached by 2005, approx. 70% by 2006, and that the program is in full effect from 2008 included. The distribution of the estimated results improvements is as follows:
  • Change to tabloid format for the morning edition:  NOK 50 mill. p.a.
  • Reduced headcounts: NOK 70 mill. p.a.
  • Other costs will be reduced by NOK 40 mill. p.a.
  • New revenue sources will yield NOK 20 mill. in results improvement
    Restructuring costs of NOK 70 to 100 mill. will be taken this year. In addition, there could be some costs relating to special initiatives for the graphical workers.
    The demanning implies a reduction of headcounts in the area of 110 FTEs by the end of 2006. In order to carry out the reductions, measures like a job transfer center, “golden handshakes” and other financial solutions will be implemented
    Graphical workers born between 1945 and 1948 will be offer a special pension solution in return for an exemption from their monopoly to carry out certain tasks. The offer will be given to employees that are part of the Graphical Workers’ Union agreement.
    A final decision will be made on the next board meeting on 27 April.
    For further information, please contact Aftenposten:
    CEO Olav M. Mugaas, telephone +47 91 13 95 70
    Director of Information Anne Lise Gjetvik, telephone +47 91 13 95 45
    Oslo, 20 April 2004
    Schibsted ASA

    Gisle Glück Evensen
    Investor Relations