Metromedia International Group Announces the Reorganization of Its Core Communications Unit
Metromedia International Telecommunications, Inc. to Relocate Operations
Headquarters to Vienna, Austria
NEW YORK, Jan. 18 /PRNewswire/ -- Metromedia International Group, Inc. (Amex: MMG), which through its Communications Group is the owner of various interests in communications joint ventures, today announced the reorganization of its core communications unit, Metromedia International Telecommunications, Inc. (MITI).
MITI and the recently acquired PLD Telekom Inc., now a part of MITI, have closed offices in Stamford, Connecticut, London, England and Moscow, Russia, which is anticipated to reduce overhead expenses (G&A) by roughly 50% from 1999 to 2000. The Company is currently determining its restructuring charge for 1999. The operations headquarters will be relocated from Stamford, Connecticut to Vienna, Austria. The executive headquarters of MITI will be consolidated with the headquarters of PLD Telekom in New York City. MITI will also reduce its headcount from 160 employees to approximately 40 employees.
John Armley, formerly the Technical and Operations Director at PLD Telekom Inc., has been named the Chief Operating Officer of MITI. Mr. Armley will report directly to James R.S. Hatt, the recently appointed President and Chief Executive Officer of MITI, and will be based in Vienna, Austria.
"As part of the ongoing strategy to integrate our companies and refocus our core communications unit, we have taken steps to consolidate our operational base in Austria, while maintaining our headquarters in New York," commented Mr. Hatt. "Additionally, we will continue to concentrate our efforts and resources on building and strengthening the areas that will generate the greatest return for our shareholders."
Since the closing of the merger with PLD Telekom Inc. on September 30, 1999, Mr. Hatt has visited businesses of MITI in Latvia and Georgia, while other officers of MITI have visited businesses in additional countries where the Company has both cable and telephony operations, to determine how these businesses can be strengthened. The Company is also continuing to rationalize its other holdings in order to maximize shareholder value.
Mr. Hatt and Stuart Subotnick, the President and CEO of Metromedia International Group, will begin presenting their conclusions and other strategic plans to the investment community in February, 2000. |
