HK broadcaster TVB to axe 5% of staff, cut down on production costs

Hong Kong broadcaster TVB will be laying off 5 per cent of its staff and cutting production costs in a bid to save HK$260 million (S$44 million) in annual operating expenses.

In a statement to employees last Friday, chief executive Thomas Hui To said the measures were part of TVB’s “cost rationalisation programme” to cope with the economic impact of the Covid-19 pandemic and the increasing demands placed on the wider industry.

“In total, approximately 5 per cent of employees will be affected by layoffs, and the company will provide reasonable compensation to those impacted in accordance with the Hong Kong Employment Ordinance,” he was quoted as saying by local media.

“We understand that these changes will impact some employees, but we believe that these measures are necessary to maintain the company’s competitiveness.”

The broadcaster’s interim annual report in 2022 said it had about 3,900 employees, including contract artists and staff in overseas subsidiaries, according to the South China Morning Post (SCMP).

In the statement, Mr Hui said the company would also cut back on outsourcing production work and rely on in-house staff to complete projects to the same quality and at a reasonable cost.

“This has been a difficult decision for the company but, as a responsible management team, we must uphold our duties and guide funds towards the most effective areas of development in a challenging risk management environment,” he said.

“The company will adjust its human resource structure, and some jobs will be terminated and not replaced. At the same time, there will be stringent control of indirect costs such as rent and outsourced work expenditure.”

Making the cutbacks was a difficult decision to take, and those who are laid off will be compensated in compliance with labour laws, said Mr Hui in an article in The Standard.

He also announced that shows that are not popular or cost-effective will be scrapped.

TVB has been struggling with falling viewer numbers and advertising revenues, among other things.

In the first half of 2022, the station reportedly suffered a net loss of HK$224 million. This narrowed its deficit by 21 per cent from the previous year.

Earlier in March, TVB warned that its losses in 2023 are expected to hit as much as HK$830 million, which would be the worst on record.

As at last Friday, its market value stood at HK$4.27 billion, about one-tenth of the more than HK$37 billion recorded during its heyday.

SCMP reported this month that the broadcaster launched its Taobao Live plans to “grab a cake in the huge live-streaming e-commerce industry in mainland China”. TVB is inviting its stars to use its live-streaming room for at least 48 shows this year.

The station has also been struggling with problems caused by the 2019 anti-government protests.

During the social unrest, some Internet users called for a boycott of TVB and the companies that advertised with it, claiming that its news coverage had a pro-Beijing bias.

The broadcaster had said it was a victim of a series of boycott campaigns by some groups on social media in 2019. At that time, Mr Hui appealed to young people “not to take part in cyber bullying”.