KUALA LUMPUR (June 4): Media Prima Bhd has confirmed a possible staff layoff, as it expedites the next phase of its business transformation that will include revising revenue models and corresponding cost management.
“These initiatives will involve operational changes at selected units to address cost inefficiencies arising from unnecessary work duplication.
“The business transformation is aimed to land the group on a robust and sustainable business model for the medium and long-term,” said Media Prima, which owns several broadcast channels and print publications, in a statement on Thursday.
“Where manpower rationalisation has to be undertaken, the group as a responsible corporate entity, will ensure that affected employees will receive a fair and equitable compensation package, governed by the law and respective unions’ collective agreements, which will be paid upon the fulfillment of all legal requirements,” it added.
The decision to expedite its transformation plan came as it was compelled by disruptive changes in the media sector, challenging macroeconomic conditions, as well as unknown variables surrounding the Covid-19 pandemic.
Two weeks ago, Media Prima posted a fifth quarterly loss of RM29.54 million, hit by declining advertising expenditure. Revenue was RM238.44 million with declines across the board except for digital media, content creation and its home shopping network.
Yesterday, news portal Free Malaysia Today reported that Media Prima is expected to carry out a second retrenchment exercise that will affect some 300 staff by September this year, quoting sources.
This follows a retrenchment of 543 staff at Media Prima’s publication group New Straits Times Press (NSTP) last March.
Shares of Media Prima closed half a sen or 3.23% higher to 16 sen today, valuing the group at RM177.47 million.
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