THE chief executive of Gems TV Holdings has stepped down as part of cost-cutting moves that will also see its global workforce slashed by about 35 per cent.

Mr Jason Choo, who holds the largest individual stake in the firm with 20.46 per cent, will become non-executive chairman in a move to reduce expenses.

Mr Choo has been replaced by group chief operating officer Tony Hillyer, 50, who will also join the board of the Singapore-listed company.

The firm, which makes gems in Thailand that are then sold via TV channels in Britain, the United States and elsewhere, is also axing hundreds of employees.

Its global staff of 1700 are being cut by about 35 per cent to 1100 while the Thai-based workforce has been slashed by around 41 per cent, with about 517 jobs going in recent weeks.

Mr Hillyer said: 'The decision to let go of staff was a very difficult and painful one to make.

'Thankfully, our switch to a modular manufacturing system at our factories in Chanthaburi, Thailand, earlier in the year has allowed us to trim our workforce in view of market conditions, without affecting production standards.'

The slumping economy hit Gems TV in the first quarter ending on Sept 30. It lost US$13.8 million, more than double the red ink of a year before when it lost US$5.6 million. Revenue for the quarter slumped 22 per cent to US$37.4 million.

Mr Choo, 37, who is the grand-nephew of the late Cathay cinema founder Loke Wan Tho, said in a statement on Dec 31: 'We continue to experience challenging trading conditions in our key markets in the UK and the US, and are taking decisive action to reduce costs across all parts of the business.

'As part of these measures, I am stepping down as CEO in order to reduce overall salary costs. Tony has been running the business on a day-to-day basis since the beginning of 2008, and has enhanced our visibility among customers and worked to improve our product offering.

'I am confident that he will be able to lead Gems TV through the downturn and continue to reinforce our brand, in anticipation of an eventual recovery.'

The firm stated that the cost cutting will not have any material impact on the net tangible assets and earnings per share of the company for the financial year.