Paris (AFP)

The Technicolor group, in difficulty, asked its employees to accept a drop in salary "on a voluntary basis", its managing director Richard Moat having already applied a reduction of 25% to cope with the effects of the crisis of Covid-19, the group said on Monday.

"In addition to applying a 25% salary reduction himself, Richard Moat asked the members of the executive committee to agree to a 20% reduction and encourages all his employees to participate in this effort on a voluntary basis", according to a press release from the technology and production of video effects group.

"The restrictions imposed to prevent the spread of the virus currently limit our activities in several markets including France, the United Kingdom, India, Canada and the United States," said the group.

Technicolor says it is not yet able to assess the financial impact of the Covid-19 crisis, but it adds to the difficulties that have lasted for several years.

The image and sound specialist had again accused a net loss of 230 million euros in 2019, for the fourth consecutive year.

In its Production Services, the group says it suffers in particular from the interruption by film studios and streaming platforms of "all their productions", thus reducing "considerably the order book" for its visual effects and post-production.

To limit costs, "a reduction in staff in our creative studios has already started," he said adding that "as far as possible" the group had resorted to "partial unemployment, holidays and other temporary layoffs. ", without further details.

In DVD services, "cinemas being closed, many studios are delaying the release of their films," the statement said. "However, demand for the catalog resists fairly well, with audiences continuing to review popular shows and films" and "so far, production has continued uninterrupted".

In its Connected Home segment (modems, set-top boxes and TV boxes), "global logistics and supply chains have been disrupted by country closings, particularly in Asia," said the group, adding, however, that "since then, supply has returned to near normal. "

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