Munich, Dusseldorf It should be the beginning of a new chapter for Axel Springer. The media company has been planning a management conference in Washington for months, the Handelsblatt learned from corporate circles. There are managers from all over the world.
Actually, Springer’s top people wanted to talk about the importance of artificial intelligence for the media, the further expansion of the publishing house in the USA – and the claim to become a global media company.
But as much as publishing boss Mathias Döpfner would like to talk about the future, the present has caught up with his company. This should be an important topic at the meeting on the US east coast. Several insiders report to the Handelsblatt that overcoming the crisis has also become an item on the agenda.
On request, Springer confirmed that the management meeting, known internally as the “Leadership Summit”, should start on Tuesday in the US capital. The informal part of the meeting began at the weekend. However, a spokesman denied that this was a crisis meeting. The current reports about Springer are not a topic of the conference.
But insiders report that the meeting will also deal with journalistic independence, the role of the publisher and democracy in general. It is quite possible that the procedure surrounding the abrupt sacking of the “Bild” editor-in-chief will also become an issue. In mid-March, the entire editor-in-chief of the tabloid was released. Anyway, there is enough to talk about. Even without AI.
Springer insider: “Mood close to meltdown”
In Germany, the crisis has long been the dominant topic in Springer’s corridors. According to the latest media reports about Döpfner’s nocturnal SMS to confidants, the “mood is close to meltdown,” reports an insider who will also be there in the USA. Others say that more and more executives are considering turning their backs on the media house.
>> Read more: Mathias Döpfner under pressure after radical emails
More than a week ago, the weekly newspaper “Zeit” published internal chats from the head of the publishing house, which showed his alternative interpretation of world events and sometimes radical perspectives. In addition, Döpfner is said to have tried to influence the reporting of the “Bild” newspaper.
Döpfner has since apologized for some of the statements in the “Bild” newspaper. However, some Springer managers were shocked by the statements to the Handelsblatt.
On Thursday, former Springer employee and bestselling author Benjamin von Stuckrad-Barre published a novel about an editorial office in which employees complain about their editor-in-chief’s abuse of power. Nevertheless, the group held on to the top manager for a long time and even tried to intimidate colleagues who wanted to testify. Observers see the conditions at Springer as described in the book, no matter how much the author himself calls it fiction, which is merely inspired by reality.
>> Read more: That’s in Stuckrad-Barre’s book about the Springer affair
Axel Springer sees the future market in America
It is no coincidence that Washington has become the place for the first personal executive meeting after the online conferences of the Corona period. The news platform “Politico” has its headquarters there. Springer bought the digital US media group in autumn 2021. It was the largest takeover in the company’s history to date.
>> Read more: Springer buys news portal for record sum
The Springer Group sees the USA as its most important growth market. “In the next few years, the growth engine of Axel Springer’s media business will be much more in America than in Germany or in other European markets,” said Döpfner at the beginning of the year.
It is currently the fourth largest publisher in the United States. The 60-year-old makes no secret of wanting to be number one. Springer employs 3,400 journalists worldwide, an increasing number of them in the USA. Springer plans to open a second location in America in the medium term, with the headquarters remaining in Berlin.
The publisher wants to expand its American business.
(Photo: imago images/Waldmüller)
Managers from Springer holdings such as Stepstone are also present at the executive meeting in Washington. The group wants to take the job exchange public. Springer already generates 85 percent of its sales and more than 95 percent of its profits with the digital business.
The financial investor KKR is also based in America. Springer entered into a cooperation with this company in October 2021 in order to accelerate growth. At the time of the takeover, KKR held almost 22 percent of the shares.
In a podcast recorded in March, KKR partner Philipp Freise described Döpfner as a “great CEO”. They support his work 100 percent. Since then, the financial investor has not publicly commented on the crisis, which has caused criticism.
Slow cultural change at Axel Springer
The new Springer strategy also includes no longer offering printed newspapers in Germany in the medium term. The extent of the job cuts announced in this context is not yet known. Insiders report that around 20 percent of the jobs are to be cut in the editorial offices alone. Springer does not comment on the number.
Even before the current media reports, there was massive unrest at Springer. According to insiders, the affair surrounding the former “Bild” editor-in-chief Julian Reichelt has not been resolved for a long time. Ex-colleagues accuse him of not separating his private and professional life and of abusing his power. He himself denies that.
Managers complain that the much-promised cultural change is far from complete. Insiders report that a particularly large number of jobs are to be cut in the HR department, which is responsible for this issue. Springer did not deny this when asked. “Cultural change is the task of all areas,” the company said. This is not affected by the personnel changes.
Meanwhile, on Monday it became known that Springer wants to take Reichelt to court. The group demands Reichelt’s severance pay back. It is said to be in the single-digit millions. In addition, the group is also demanding payment of a contractual penalty. Springer believes it is possible that Reichelt took documents and internal information with him and is now using them to his own advantage.
More: The entire editor-in-chief of “Bild” has to go.
First publication: 04/24/2023, 7:48 p.m.