Analysis of job cuts at Tamedia: a turning point for the Swiss media sector – News

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An analysis by Salvador Atasoy

27.08.2024, 10:40

Tamedia wants to cut almost 300 jobs. That corresponds to around 20 percent of the Tamedia workforce. It is the largest job cut since Tamedia became part of the TX Group’s holding structure in 2019. This hits the Swiss media sector hard.

If you look at the job cuts in more detail, you can see that the printing business accounts for the largest share of the job cuts, with around 200 jobs. Tamedia is closing the printing centers in Vaud and Zurich and will now concentrate on its third location in Bern.

Printed newspapers are a long-term obsolete model

It has been known for some time that Tamedia wants to sell its large printing centers. Evidently, attempts to find a buyer have failed for the time being, and two locations will be closed by 2026.

This shows that although paper prices have fallen again in recent months, the printed newspaper is still too expensive and will probably be a dying breed in the long run. It will only survive in a niche and will cost accordingly.

If you consider that Ringier will soon be closing its largest magazine printing plant in Zofingen, Switzerland will lose an important part of its printing capacity within a short period of time with the Tamedia decision. A turning point for the Swiss media sector.

Media diversity continues to shrink

But the decision also shows that journalism is continuing to lose importance within the TX Group. Even if the decision is understandable from an economic point of view, it still has consequences for the media diversity in our country.

Tamedia’s already weak margin fell further in the first half of the year, from 2.7 to 2.6 percent. The company had to act.

Online, the independence of small brands will be abandoned. They will be integrated into the large umbrella brands such as “Tages Anzeiger” or “24 heures” – perhaps as a section. In print, the titles will still appear in the usual variety. However, the reduction of 90 jobs will have a major impact on the editorial side.

Western Swiss media dismantled from Zurich

As was the case with job cuts last year, Western Switzerland is likely to be hit disproportionately hard, as the loss from advertising is particularly high here.

Around 15 years ago, Tamedia took over the largest publishing house in western Switzerland, Edipresse. Fierce discussions followed. There was great fear that Zurich would one day control media developments in western Switzerland.

No, they won’t, they said from Zurich. A separate management in French-speaking Switzerland would prevent this.

In July, it was announced that Christine Gabella would be leaving her position as CEO in Lausanne. The latest cuts will therefore likely be directed and implemented from Zurich.