Malaysia's largest media group is laying off hundreds of its print and broadcast staff as it struggles financially due to disruptive changes in the global and local media scene.
Kuala Lumpur-listed Media Prima, which has some 3,800 employees, controls the country's four main private TV channels - TV3, NTV7, 8TV and TV9 - and daily newspapers New Straits Times, Berita Harian and the Harian Metro tablet.
The newspapers are grouped under New Straits Times Press (NSTP), whose journalist union said 543 employees were being laid off.
Media Prima said in a statement yesterday that it had sought consultations with journalist and newspaper worker unions before coming to a decision on the new operating structure, as well as the list of affected employees. It did not say how many workers would be leaving under the restructuring.
"The group has ensured a fair and equitable compensation governed by the Employment Act, the respective union collective agreements and employment contracts. The group will additionally provide support, which includes job outplacement services and career counselling," Media Prima said.
The affected employees were notified yesterday.
In July, Media Prima's ownership changed hands from Umno to businessman Syed Mokhtar al-Bukhary, after the Pakatan Harapan coalition ousted the Umno-led Barisan Nasional from power. Tan Sri Mokhtar, a tycoon, is close to Prime Minister Mahathir Mohamad.
In its annual report, Media Prima said net profit for calendar year 2018 was RM58.99 million (S$19.3 million), down 23 per cent from RM76.6 million in 2014.
Revenue last year stood at RM1.19 billion, 21 per cent lower than the RM1.51 billion at the end of 2014.
Media Prima said the next phase of its business transformation exercise would include changes to the group's business model and internal organisation structure "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".
This is its second round of staff rationalisation, with the first announced in January this year, via a mutual separation scheme.
According to the NSTP's branch of the National Union of Journalists (NUJ), the termination is to take effect from March 12, with 543 employees at NSTP expected to have received termination letters yesterday.
"NSTP NUJ hopes the retrenchment process goes smoothly and the compensation that the company promised to give us will be delivered in accordance with the law so that we can look after the welfare of our members," said chairman Farah Marshita Abdul Patah in a statement yesterday. "We also hope this is the last round of retrenchment the company will undertake."
The struggles of Media Prima mirror those experienced by other media groups.
Utusan Malaysia, Malaysia's oldest Bahasa Melayu newspaper, which was owned by Umno, was shut down in October after its publisher Utusan Melayu ceased operations, leaving 700 people jobless. The printing licence of Utusan Malaysia is now held by Mr Mokhtar.
