MEDIA Prima Bhd will undertake a wide-scale retrenchment exercise in the first quarter of 2020, said the New Straits Times Press’ chapter of the National Union of Journalists (NSTP-NUJ).

NSTP-NUJ said in a statement it was informed of the decision by the Media Prima Group management at a 5pm briefing today.

“The retrenchment is aimed at restructuring all the Media Prima companies due to the financial situation of the company.

“The retrenchment will follow the Last In First Out (LIFO) principle and retrenchment payments will be made in accordance with the respective collective agreements,” said NSTP-NUJ.

It said compensation payments would be made in one tranche and in accordance with the Collective Agreement between employees and the company.

“The management will issue a list by the end of December. This exercise will involve all departments and staff, including management.

“Some departments will be shrunk while other units could be closed down,” said NSTP-NUJ.

According to the union, Media Prima will also hold a town hall meeting on November 15.

Meanwhile, the group also issued an internal memorandum informing staff about the impending retrenchment exercise, saying would be completed by the first quarter of next year. 

“For the past five years, the media industry has been in a state of uncertainty, with companies scaling down operations or shutting down.

“Regrettably, our business has also been adversely impacted, as reflected in our financial results. As such, this will require a business transformation, which includes changing its business model and restructuring internally,” read a memo by Media Prima’s Group Human Resources Department.

It said that despite reducing operational costs and conducting mutual separation schemes, Media Prima Group would not be able to sustain operations unless it took drastic measures.

“Based on market demands, this will, unfortunately, involve a substantial reduction in our workforce.”

Media Prima Bhd, of which 31% is owned by businessman Syed Mokhtar Al-Bukhary through Aurora Mulia Sdn Bhd, is the country’s largest media group.

Besides NSTP, Media Prima owns all the private free-to-air television channels – TV3, Channel 9, TV8 and NTV7. It also owns radio stations Fly FM, Hot FM and Kool FM, as well as outdoor advertising company Big Tree.

Media Prima posted a net loss of RM8.83 million for the second quarter ended June 30, 2019, its second consecutive quarter in the red.

Last November, it let go 190 staff from TV3 with three months’ notice, while another 43 were offered a mutual separation scheme. – November 1, 2019.