Media Prima hands out official notifications as it cuts jobs to remain sustainable

Media Prima has confirmed to A+M that it will proceed with its manpower rationalisation exercise as part of the next phase of its business transformation exercise announced on 1 November. The statement was released shortly after Malay Mail reported earlier that Media Prima will allegedly cut the number of editorial staff at the New Straits Times, Berita Harian, and Harian Metro by half. It added that Media Prima's broadcasting arm is expected to be the most heavily impacted by the job cuts.

Media Prima did not comment on the news by Malay Mail but said the new operating structure and list of affected employees have been determined after several consultations with the Sistem Televisyen Malaysia Berhad Employees Union, TV3 Executive Union, National Union of Journalists Peninsular Malaysia, and National Union of Newspaper Workers. The next phase of Media Prima’s business transformation exercise will include changes to the group’s business model and internal organisation structure. This is to enable the group to be future-proofed and sustainable given the uncertain macroeconomic conditions and disruptive changes in the global and local media sector.

The group said that official notifications were given to all affected employees on 16 December 2019.

Compensation payments will be made in full upon completion of internal and regulatory processes. Media Prima added that it has ensured a fair and equitable compensation governed by the Employment Act, the respective union collective agreements and employment contracts. Media Prima will additionally provide support which includes job outplacement services and career counselling.

Meanwhile, the group's traditional advertising and circulation revenues for the nine months of its financial period ended 30 September 2019 dipped 15% and 21% respectively compared with 2018. According to the financial statement, overall cautious spending contributed to revenue decline across the group’s business segment.

This year also saw Utusan Malaysia and sister tabloid Kosmo! cease operations after a period of financial difficulty. The board of Utusan announced in a Bursa filing on 19 August that it was unable to submit its regularisation plan as prescribed under Practice Notes 17 (PN17), within 12 months from the date of its admission as PN17 issuers. PN17 concerns companies that are in financial distress and those which fall within the definition of PN17 are required to submit their proposal to the approving authority to restructure and revive the company. This is in order to maintain its listing status.