Story House Egmont is downsizing by 60 man-years in Norway. The company stated this in a press release on Thursday.
The negative result in 2023 and the challenges in the pressured media market are pointed to as reasons for the downsizing.
– This involves, among other things, joint management and closer cooperation across national borders within the European Story House Media organisation. Unfortunately, this also entails a reduction in staffing of 60 man-years in Norway, the press release states.
The operating result for 2023 ended with a loss of NOK 3.5 million. By comparison, the company had 75.7 million in profit in 2022.
– The trend from 2023 has unfortunately continued into 2024. The macroeconomic trends are fixed, with high prices and a low krone exchange rate, and wholesale and advertising revenues are lower than we had hoped for. Unfortunately, the savings plan last year was not enough. We will have to further reduce costs and staffing in the Norwegian business, in order for it to be profitable and financially sustainable, says managing director of the media department in Story House Egmont, Per Kjellander.
Also read: Story House cuts 33 man-years
Termination packages and gift pension
The employees have been informed on Thursday about the upcoming reorganization and downsizing, it is further stated.
They will be offered severance packages and gift pensions.
The downsizing will affect both the editorial environment as well as sales, marketing and joint functions such as IT, technology and finance.
– We hope that we will be able to get through this downsizing with the greatest degree of volunteering. That is why we have adjusted the final packages, so that those of our talented employees who choose to accept, get the best possible start on a new chapter in their working life. In addition, we offer contributions to further education or career guidance, says Kjellander.
Despite the fact that the company is facing a difficult time, Kjellander still believes that the media house is well equipped for the future.
– We are a large and strong player on the Norwegian market. As one of the best at storytelling, both commercially and editorially, and with strong brands such as Hjemmet, Bonytt, Klikk and Egmont People, we have all the prerequisites to emerge stronger after this tough process. We are also looking for possible future acquisitions and new, profitable licensing, he concludes.
Also read: Egmont announces major cuts
