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UPDATE 1-Technicolor to cut 625 Grass Valley jobs worldwide
March 31, 2010 / 5:08 PM / 7 years ago

UPDATE 1-Technicolor to cut 625 Grass Valley jobs worldwide

* Plan to meet falling TV budgets and lower ad spend

* Company presenting plan to works council

(Adds detail, background)

PARIS, March 31 (Reuters) - French technology group Technicolor TMS.PA, formerly known as Thomson, is reorganising its Grass Valley division and plans to cut 625 jobs worldwide at the broadcast and TV/film equipment unit it is seeking to sell.

Technicolor said in a statement on Wednesday the reorganisation plan would enable Grass Valley “to adapt to a strongly deteriorated business climate” caused by declining broadcaster budgets and lower spending on advertising.

Grass Valley’s revenues have fallen 31 percent since the end of 2008, and it made a loss before tax, net finance costs and impairment charges of 87 million euros ($117 million) in 2009. The planned job cuts represent a quarter of Grass Valley’s headcount.

Since the beginning of this week, meetings have been held with works councils to present the plan, which aims to return Grass Valley to break-even, but Technicolor did not specify when it aimed to achieve this goal.

Technicolor, which came close to financial collapse last year, said in January it would sell businesses that contributed around 1 billion euros to its 2008 sales, including Grass Valley, advertising unit PRN and cinema advertising unit Screenvision, to cut debt. (Reporting by Caroline Jacobs, editing by Will Waterman) ($1=.7448 Euro)

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