Austerity measures and staff cuts at the “Kurier”

The workforce was informed of the relevant plans on Thursday. In the next few days, talks will be held with around 20 employees for amicable resolutions, and a social plan is being negotiated, reported “Kurier” managing director Thomas Kralinger of the APA.

Furthermore, a series of non-replacement appointments due to natural departures and retirements as well as cost reductions through partial retirement are planned. “There is a macroeconomically toxic situation that, at the end of the day, means that we are under extreme cost pressure in all media companies, which we can only cope with by significantly changing the product or reducing editorial costs,” says Kralinger. The inflation-related cost increases could not be compensated for either on the advertising market or on the reader market. That’s why all media publishers would have to cut costs, “as unpleasant as that is”.

Print industry facing major upheavals

The “Kurier” has around 200 employees. Kralinger did not name a specific volume, but the planned savings should be more than 10 percent, and personnel and material costs would be reduced. “The collective contract increase is a seven-figure sum for us, and I definitely have to save this amount because we can’t compensate for it with proceeds. I’m so sorry. The conclusion is understandable given the price development, but difficult to cope with.” said Kralinger.

The increase in media funding is “essential help and support for media publishers, but the development on the cost side is much more dramatic,” said the “Kurier” managing director. Overall, the print industry is facing major upheavals. “Our future is the digital subscription. Digital subscriptions have other challenges, such as designing a print daily newspaper. We have to prepare ourselves for that. We have to invest in new technologies. AI can make certain activities easier and maybe even replace the loss of staff. And we have to take action geared primarily to the requirements of a newer, younger reader market. We are currently registering, for example, that we offer a great deal of reading material digitally. We will reduce the scope of the digital offering and make it clearer. Of course, all of this follows the motto digital first and the Paid content strategy.”

Criticism of the government plans for the ORF law

Kralinger, who is also Vice President of the Association of Austrian Newspapers (VÖZ), criticized the government’s plans for the ORF law. In view of the economic challenges, the imbalance on the Austrian media market should not be further aggravated. “ORF has a clear competitive advantage. I don’t know of any other market where public broadcasting is so dominant. In future, ORF will have solid financing from the household levy, 700 to 800 million euros, and at the same time many opportunities on the advertising market . With all friendship and understanding for the desire for compromises, but we will not be able to accept that,” said Kralinger, alluding to the ongoing talks about an amendment to the ORF law.

Above all, the text offer from ORF.at is a thorn in his side. “As long as this professional and well-made offer is free and freely available, it will make it difficult for quality media to sell digital subscriptions.” The publisher therefore calls for a “very strong restriction of the text offer. The ORF should concentrate on moving images and radio and radically withdraw from the text offer. That can still be a minimal explanation of moving images, but not a newspaper-like offer, no news page.” According to Kralinger, the public broadcaster’s advertising opportunities should also be restricted. This is the only way to ensure media pluralism in Austria.

problems with sales

Almost all domestic print media reported declining circulation figures in the most recent circulation control. For example, subscription sales including e-paper editions of the ten largest daily newspapers fell by five percent in 2022. Although e-paper sales have increased by four percent, they are far from making up for the decline in print sales. In addition, the print industry has been struggling with massive increases in paper prices and energy costs since last year, and there are problems in sales because many publishers lack staff for home delivery. Some media companies – including the Styria Group – have already responded with cost-cutting programs.