The Axel Springer publishing house recently approved one of its biggest changes: Kohlberg Kravis Roberts (KKR), the investment company from the USA, has now become the largest shareholder in the media company and wants to take it out of the stock market. In a letter to the employees Springer announced restructuring and cost measures "in the areas that do not grow". The company pension plan for employees should be cut.
In an interview with the Süddeutsche Zeitung, CEO Mathias Döpfner said: "Where there is a structural decline in sales, we have to restructure and reduce jobs." This concerns the "world" and the "Bild" newspaper, as well as the printers and magazines. Döpfner said: "We will save more with the chiefs than with the Indians." He aimed thereby at a streamlining of the partly large editors-in-chief.
In sum, jobs would be built up. All in all, today there are more people at Springer than 15 years ago. Döpfner himself has been on the company's executive board for 17 years.
In the documents for the entry of the KKR the newspaper "world" is expressly mentioned. This is not meant to be negative, said Döpfner in a conversation: "But we wanted to express our special commitment to the world and even if it does not contribute to increasing the average return of the house, it is an essential part of Axel Springer."
KKR wants to accompany Springer "in the long term"
When asked about the future of the company, heiress Friede Springer answered: "We remain a journalistic house". Döpfner dreams of becoming the global market leader as a digital company, with the digital journalistic brands and the digital classifieds markets as two mainstays. KKR European head Johanns Huth said his company will "accompany Springer in the long term".
Springer tries to compensate for the weakening development in print media with online news offers. The sector with products such as Business Insider and the job portal Stepstone already generated 71 percent of sales last year.
KKR already has experience in the German media sector. From 2006 to 2013, the investment company was involved in the television station chain ProSiebenSat1 and rose with profit again. Together with media manager Fred Kogel, KKR has also been building an independent television and film production and distribution company in Germany around Tele München since the beginning of the year.