TVB reportedly cuts 5% of its workforce for cost optimisation

TVB is reportedly mulling to lay off 5% of its staff as part of its cost optimisation and resource management plan. The company aims to save HK$260m in annual operating cost. 

According to local reports such as HKET and NOW TV, TVB’s executive chairman Thomas Hui said in a letter to employees that in order to ensure that the company can adapt to market changes, it has decided to carry out cost optimisation management to ensure the company's business stability and sustainable development.

The company will also undertake workforce restructuring, meaning some positions will be eliminated, said Hui. “At the same time, indirect costs will be strictly controlled, such as rent, outsourcing work and other expenses. Overall, about 5% of the employees will be laid off, and the company will provide reasonable compensation to the affected employees,” he added.

According to its 2022 interim report, there are currently 3,907 full time staff in the company, including contract artists and employees of overseas subsidiaries. Under the new restructuring plan, nearly 200 staff will be affected.

Other measures include standardising cost management and substantially adjustomg the programme production budget to improve cost efficiency, make more effective use of the company's internal resources, and transform the old programme production model.

“Programmes that fail to meet the expected ratings and economic benefits will be terminated. At the same time, the reliance on outsourcing work will be reduced, and work of the same quality will be completed at a reasonable cost through its own creative ability and self-owned resources,” Hui added.

Hui said that this is a very difficult decision for the company, but as part of a responsible management team, it is necessary to stick to its responsibilities, correctly allocate resources to the most efficient place for development in view of risk management.

MARKETING-INTERACTIVE has reached out to TVB for a statement. 

Don't miss: TVB expects up to HK$830m loss in 2022 due to weak advertising revenue

Most recently, TVB said it is expecting a loss attributable to equity holders of the company of up to approximately HK$830m in the last financial year, as well as an EBITDA loss of approximately HK$338m compared to the financial year of 2021.

According to the official announcement on HKEX, TVB's unaudited consolidated revenue has grown by 24% from HK$2,899m for financial year 2021 to approximately HK$3,586m for financial year 2022. However, the company is also expecting a loss of approximately HK$338m for financial year of 2022 compared to the loss of HK$314m the previous year; as well as a loss attributable to equity holders of the company for the year in the range of approximately HK$790m to HK$830m.

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