New home, fewer jobs at ProSieben<br />

Flagship channel moves to low-cost Munich suburb

COLOGNE, Germany -- European broadcaster ProSiebenSat.1 will cut costs by folding together its sales and marketing operations and moving flagship channel Sat.1 from prime real estate in Berlin to a low-cost suburb outside Munich, where sister channels Pro7 and Kabel 1 already have offices. ProSiebenSat.1 also will cut 225 jobs, or about 7% of its German work force.

The biggest change will be the move of Sat.1, with its 350 employees, from Berlin to the sleepy town of Unterfohring. The move has tremendous symbolic significance and illustrates the extent of ProSieben's financial problems.

Operating profits at ProSiebenSat.1 fell 17.4% to 103 million euros ($133 million) in the third quarter and revenue dipped 3.3% to 647 million euros ($833 million).

ProSieben also announced a management shuffle. Sat.1 head Matthias Alberti is getting kicked upstairs, taking a new job as co-manager of ProSiebenSat.1's German free TV operations. Guido Bolten will take his job as Sat.1 boss, while Bolten's position running Kabel 1 will go to Jurgen Horner.