Print media transformation Switzerland: Tamedia’s new economic direction

Ms Peppel-Schulz, the TX Group, to which Tamedia belongs, increased its turnover to almost one billion francs last year. It would be easy to cross-finance good journalism. Instead, Tamedia is announcing layoffs and printing plant closures. Why?

Jessica Peppel-Schulz: I took over as CEO to reposition Tamedia sustainably and economically. We have to take our future into our own hands. In this task, I cannot reach into other people’s pockets. As an independent, privately financed company, we have to have an answer to the profound changes of the last few years so that we can continue to produce independent, quality journalism for Switzerland on sound footing. This must be independent, regardless of the form of financing.

According to our sources, you have been tasked with increasing profits from 2 to 8 percent. Is that correct?

Peppel-Schulz: Tamedia currently has a margin of around 2 percent. In other words, we are not positioned for sustainability. With declining sales in the print business and the advertising market, this margin does not allow us to make anywhere near the investments that this company urgently needs for a future in this new digital world. There are already many media companies today that generate a margin of 8 percent and can therefore make self-financed investments.

One of the main measures is the closure of the printing plants in Lausanne and Zurich. The Bern site is to be expanded, but a few months ago the “NZZ am Sonntag” quoted an internal document stating that the third printing plant is also to close by 2032 at the latest. Does this scenario still apply?

Peppel-Schulz: I am not familiar with this paper and therefore this scenario. My task is to develop an economically sustainable strategy. There were no “sacred cows” when developing this strategy. It was important to look at the entire Tamedia company and to analyse the entire value chain. The total capacity utilization of our three printing plants is less than 50 percent. That costs us a lot of money. One initiative of our new strategy involves the gradual closure of two printing centers. With the Bern location, we are investing in the future. We have the task of supplying our readers with printed products for as long as possible. There is no end date for the printed newspapers.

The official aim of the new strategy is to strengthen four of Tamedia’s main brands, namely “Tages-Anzeiger”, “Berner Zeitung”, “Basler Zeitung” and “24 heures”. What will change for me if I am a subscriber to the “Sihltaler”, the “Thuner Tagblatt” or the “Landboten”?

Simon Bärtschi: Nothing, the printed edition will remain the same. If you have a subscription to the “Landbote” or another Zurich regional newspaper, you will find the online offering on the “Tages-Anzeiger” website. This will enable us to create a wide range of offerings with high-quality articles from home and abroad, regional news and useful services for all readers. The “Bund” and the “Tribune de Genève” will retain their digital presence because they have a high proportion of digital subscribers.

The closure of the printing works will result in 200 jobs being lost, but 90 full-time positions will also be cut in the editorial departments. Will these cuts primarily affect journalists?

Bärtschi: We will clarify in the next few weeks, subject to the upcoming consultation procedures, exactly where these 90 positions need to be cut. We will strive for closer cooperation between the editorial departments. This also applies, for example, to the Federal Palace editorial departments in German-speaking Switzerland and French-speaking Switzerland.

Peppel-Schulz: With the four major brands, we can potentially reach 5.5 million people today. These brands have their own special features that we must and want to maintain. We, as Tamedia, earn money with these brands. It is important that these brands have a clear positioning. We must continue to sharpen the positioning and serve different target groups as best as possible with a clear brand core.

Newspapers in French-speaking Switzerland already have to publish many translations of articles written in German-speaking Switzerland because they lack the resources. Will this trend continue?

Peppel-Schulz: In the past, such issues were not addressed in a very systematic way. That costs a lot of resources and is not efficient. Another goal of our strategy is to bring the teams closer together, to have everyone at the same table. In German-speaking Switzerland, there are similar problems to those in French-speaking Switzerland. There were austerity measures here too, and people were afraid: “You have to do almost the same thing with less.” We need to improve collaboration.

Has it been bad so far?

Peppel-Schulz: There have hardly been any so far. I have noticed that many colleagues did not know each other at all. Individual brands have been put together, but collaboration has never been sought or maintained. That is why I have introduced regular formats in which the teams can exchange information directly and better. In addition, new tools are needed that make it easier to focus on the core mission of journalism. “Transformation” means restructuring and cost-cutting measures, unfortunately. That is sad. But it also means development and expansion combined with new growth. That is why we are also investing in recruiting new talent and looking for specialists in the digital sector.

You like to talk about how you have to “take people along” with you in this transformation. Now you have to cut 290 jobs. Isn’t it cynical to talk about “taking people along”?

Peppel-Schulz: A transformation means change. It is never easy, but above all it requires a high level of transparent communication. Anyone who has ever been fired knows that it is not just the fact that I was fired that matters, but also why and how this happened. That is why I will be focusing particularly on these colleagues over the next few months. I want to accompany them closely in this process. That is part of respect. I am also responsible for the remaining employees and their jobs. They are going through just as extensive changes and need to be supported. They need to be included and taken along in the construction of the new Tamedia. That causes sleepless nights when you realise the extent of the situation. What I can do is take responsibility. And that is what I am doing. This also includes questions such as: How do we conduct the termination discussions? Can we support colleagues with training and further education, how can we best support them? For me that means “taking them along”.