A day after DPM Heng announced new measures to save as many jobs as possible, one giant announced a retrenchment exercise that’ll affect 140 people.
Today, SPH announced that they’re holding a restructure of its media sales and magazine operations, and 140 people will be laid off.
The affected employees are from the Media Solution Division and SPH Magazines, and that comprises nearly 5% of its media group.
The total cost of the retrenchment exercise?
$8 million.
Reader Bao: Wait, why retrenchment need money one? I thought just kick them—
SPH has informed the Ministry of Manpower, the Creative Media and Publishing Union (CMPU) and NTUC on this exercise and affected staff will receive compensation on terms negotiated and agreed with the union. SPH has also been working closely with the union and e2i to ensure that affected staff receive the help and support they require.
I hope that answers your question, Mr Bao.
Since COVID-19 hit, the company has already reviewed its costs, cut back on discretionary spending and instituted pay cuts for senior management.
In March this year, SPH directors (including the CEO) and senior management has taken voluntary pay cuts of 10% and 5% respectively.
Its CEO said, “Subscriptions and readership of our news titles have increased since the onset of Covid-19. However, the economic downturn has significantly impacted our advertising revenue. A more integrated approach of producing and selling our content across our various platforms will allow us to deal more efficiently and effectively with the new level of demand we are seeing from our advertisers and audience.”
Wait, why would revenue drop when subscription and readership increase?
Well, because people are reading more but advertisers aren’t advertising. You’re getting free contents.
The bloodline of any media company is advertising revenue; only a business managed by an egotistic boss with rich parents focuses on high readership without worrying about revenue.
So, still think you’re entitled to free content?
In this exercise, newsroom staff and journalists aren’t affected, but there are some changes.
The company is exiting the magazine business in Malaysia and will (or have already) cease publication of Cleo, Young Parents and Shape.
Interestingly enough, digital circulation of their products grew by a whopping 52.6% year-on-year, though there’s a slight drop in the print circulation, which definitely isn’t affected by COVID-19.
This is the media giant’s third retrenchment exercise in three years.
In 2017, they retrenched 130 employees from the newsroom and integration marketing division. Last October, they retrenched 130 employees from its media solutions division, magazines and smaller subsidiaries.
