Grass Valley to Trim Workforce by 25 Percent
Technicolor, parent company of equipment manufacturer Grass Valley, an important provider of backbone technology for TV sports production, is cutting approximately 25% of the Grass Valley workforce as it scales the company down from more than 2,500 personnel to less than 1,900.
It is unclear where amidst Grass Valley’s global operations those cuts will occur but early press reports say that indications are that most of the job cuts will occur in Europe.
In a press release Technicolor said the move will enable its Grass Valley business to adapt to a strongly deteriorated business climate. Grass Valley, currently being divested, is not within Technicolor’s strategic re-focusing, centered upon services for content creators and distributors.
Technicolor says the worldwide market for professional broadcast equipment, where Grass Valley does business, has been in sharp decline (about 30% since the end of 2008) mainly as a result of declining broadcaster budgets and advertizing expenses. The company adds that Grass Valley faces serious economic difficulties, as evidenced by a 31% decline in revenues between 2008 and 2009 and losses totaling 87 million Euros in 2009.
Technicolor (previously known as Thomson) has been attempting to sell Grass Valley since February, 2009. At the time Thomson said it had received “expressions of interest” in the business units but it has yet to find a buyer. Grass Valley will be exhibiting at NAB.