Presto compelled to reduce its workforce
Staff at Presto Presse-Vertriebs AG (Presto), a subsidiary of Swiss Post, deliver subscription daily and Sunday newspapers. They work on a minimum employment level of 5 to 25 percent. The current challenging economic situation, lower consumer confidence, the continuous decline in newspapers, and high energy and paper prices pose major challenges for media companies and the advertising market. This has implications for Presto. It is distributing fewer and fewer newspapers. The difficult environment is forcing Presto to adapt to the new circumstances in order to be able to continue operating its business profitably. The management deeply regrets that a total of 48 staff members may lose their jobs. This would equate to a loss of 8.5 full-time equivalents. Presto has begun a consultation process to give staff the opportunity to make suggestions on how the planned job cuts could be avoided. Swiss Post and Presto are holding discussions with their social partners. Possible mitigating provisions will also be discussed. The goal is to make the planned job cuts as socially acceptable as possible for the staff.