Scandi media conglom Modern Times Group (MTG) is set to axe 300 jobs — 7% of its workforce — across Sweden, Norway, Denmark and the U.K. as part of a major restructure to spur its digital growth.
Unveiled today by Jorgen Madsen Lindemann, MTG CEO, the job cuts will cost the company 700 million kronor ($84 million), while the restructure will allow the firm to save about 600 million kronor ($72 million) every year beginning in 2017.
“The new structure will realign a wide range of functions, increase efficiency levels across the business, yield savings to offset the significant adverse currency effects the group faces and enable reinvestment in the group’s core business and continued digital expansion,” said Lindemann.
As it aims to compete with global players like Netflix, MTG has recently ramped up its investment in digital media with the acquisition of Turtle Entertainment, the online gaming and electronic sports company which operates ESL. MTG also upped its shares in Splay, the leading Swedish YouTube channel, which boasts about 14 million subscribers. MTG will soon bow Viaplay, its subscription-based VOD platform, across Eastern Europe.
Modern Times Group is also currently preparing to sell its 37.9% stake in Russia’s CTC Media in light of the country’s new law requiring foreign companies to cut ownership in Russian media shingles to no more than 20% starting in January.