STOCKHOLM — Pubcaster Swedish Television is planning to pinkslip 400 staff as part of a drive to cut $40 million from the budget in the next two years.
The net said that the cuts were necessary because of the disparity between the rise in funding and the rise in costs. Coin has been increasing by 2% a year while the cost of staff and new technology has risen by 4%-5% a year.
“We are changing our production structure to use our resources in an optimal way,” CEO Eva Hamilton said Wednesday.
“Our present organization was created when Swedish Television had a monopoly. Now we live alongside wealthy and tough competition.
“That’s why we are concentrating our efforts in three clear, efficient divisions with limited organization, few bosses and a slimmed administration. We are organizing with regard to the production, not geography.”
Production will be divided into three divisions: one for the production of news and sports, headed by Olov Carlsson; one for all other TV production, headed by Johanna Frelin; and one for inter-active production, headed by Lena Glaser.
The production of programs will be concentrated in Stockholm, Gothenburg, Malmo and Umea. The other 24 local stations around the country will only produce news content.
Programs that were produced in other cities, like consumer program “Plus” and travel program “Packat och klart,” will now be produced in one of the four big cities.
Many of the 400 jobs to go will be through early retirement.