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/ 03.31.2010 7:00PM
Grass Valley to Lose 625 Jobs
PARIS: Technicolor is cutting one-fourth of work
force at its Grass Valley division, which it put up for sale a year ago. The
reduction would comprise 625 jobs worldwide, Technicolor said. The unit remains
for sale and no longer fits within the parent corporation’s strategic plan.
“The worldwide market for professional broadcast equipment, where Grass Valley
does business, has been in sharp decline--about 30 percent since the end of
2008, mainly as a result of declining broadcaster budgets and advertising
expenses,” Technicolor said in a release announcing the restructuring. “Like
all companies in the sector, Grass Valley faces serious economic difficulties,
as evidenced by a 31 percent decline in revenues between 2008 and 2009, and
losses totaling 87 million euros [US$17 million] in 2009.”
The French conglomerate, now focused on content-creation services, said the
restructuring would involve all Grass Valley sites in Germany, Japan, the
Netherlands, France and the United States. Meetings at the various sites
commenced at the start of the week.
“The meetings were held in order to present a reorganization plan needed to
enable Grass Valley to return to the break-even point in the current economic
context,” Technicolor’s release said. “The plan was based upon Grass Valley’s
reorganization into three distinct activities--broadcast, head-ends and
transmission. It would include a 25 percent reduction in Grass Valley headcount
by eliminating 625 jobs worldwide.”
Technicolor said nothing further about the state of the sale of Grass Valley. The
parent company itself just completed a debt restructuring under the protection
of the French government, having dropped the name, “Thomson.” Final approval
was reached in January. -- Deborah D.
McAdams
(Image by ScribeSevenThree/JDub)
More on the story:
January 27, 2010: “Thomson Becomes
Technicolor”
Shareholders approved several resolutions, including one proffered last
month to reduce the company’s debt of €2.8 billion (US$3.9 billion) by 45
percent. The plan also includes a capital injection of €348 million (US$491
million), a €1.3 billion (US$1.8 billion) debt-for-equity conversion, and a
bond buy-back provision.
December 22, 2009
: “Creditors Clear Thomson for
Restructure”
Grass Valley parent corporation Thomson SA won the approval of the third and
final group of creditors for its bankruptcy plan.
November 30, 2009
: “Thomson Prepares for
Restructuring”
Grass Valley parent corporation Thomson SA said it would announce its debt
restructuring plan some time today.
April 29, 2009
: “Thomson Scores on
Breach Waiver”
Thomson said its creditors have granted it a waiver, giving the company until
June 16 to restructure its 2.9 billion euro ($3.8 billion) debt due April 30.
March 10, 2009
: “Thomson Drops on Loss”
Thomson today posted a net loss of 1.9 billion euros ($2.4 billion U.S.) for
2008, compared to a loss of 23 million euros for the previous year ($33.8
million).
February 25, 2009
: “Grass Valley Exec:
We’ll Be Around”
Grass Valley will take care of customers through its divestiture from Thomson,
a company executive said this week.
February 2, 2009
: “Thomson Cuts Grass”
Thomson (NYSE:TMS) is putting Grass Valley up for sale. The Parisian tech giant
today said the board approved divesting the division, along with its Premier
Retail Networks digital signage business.
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