November 25th, 2008

Hungary’s TV2 lays off 7% of staff, citing effects of financial crisis

TV2 is laying off 7% of its employees, most of whom are involved in creating content for the channel, writes Kreatív Online, based on Napi Gazdaság.

The channel said it is laying off 35 of its 538 employees and eliminating its separate news management section in order to prevent serious effects of the financial crisis, and because of short-term profit expectations of investors.

CEO Zoltán Várdy wrote in a communiqué that “the current operation of the TV2 business group is stable and profitable” and added that the above measures are necessary to prepare for the future.

The TV channel presently does not feel any changes in advertisers’ willingness. Revenues have grown by 1% to 2% compared to last year. Certain advertisers, such as banks, however, are spending less on advertisement. The channel cannot say if the reason is caution or these steps forecast a trend.

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