Aug. 29 (Bloomberg) -- Bertelsmann AG is planning to cut about 1 billion euros ($1.4 billion) in costs as it prepares to pay back 800 million euros in loans due next year, Spiegel reported, without saying where it got the information.

Programming at its publicly listed RTL Group television subsidiary will be cut and publisher Random House will reduce advances paid to authors, Spiegel said in a pre-released story from its next edition.

The Arvato services unit will absorb about one quarter of the savings. Another 200 million euros will come from the publishing unit Gruner+Jahr, the news magazine said. Jobs will be cut in all divisions for a saving of about 200 million euros, Spiegel said.

Restructuring, including severance pay, will cost about 200 million euros, Spiegel added.

To contact the reporter on this story: Joseph Mapother in Frankfurt at jmapother1@bloomberg.net

Last Updated: August 29, 2009 10:19 EDT