Postimees Group announces employee pay cuts
Postimees Group, one of the two major private media groups in Estonia, has proposed to cut staff salaries by 30 percent from April 15 until May 31.
"We have reached a decision that instead of laying off some employees it is fairer to collectively cut salaries by 30 percent for April 15 until May 31," CEO of Postimees Group Andrus Raudsalu said in an address to the group's employees.
Postimees Group will apply for the Unemployment Insurance Fund (Töötukassa) initiative which can reimburse salaries over a two-month period for companies in difficulty. This means that next month, a part of the salary of the employees will be payed out by Postimees Group and another by the unemployment fund.
Media market is vulnerable to crises such as the current pandemic and after decline in revenue, advertising will be scaled down, Raudsalu said. In the best case scenario, media market will recover by autumn, according to him.
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Editor: Anders Nõmm
