SPH Media recently reported that they will be letting go of 34 workers from their technology division, accounting for approximately 10% of the employees in that department. According to CNA, the choice to layoff workers is made in line with the company’s aim to stay competitive and viable in the changing media environment.
As stated by a company representative, the reorganization of the technology team is to focus on improving efficiency and resource allocation across various technology departments. SPH Media has promised to offer full severance packages, career coaching, job placement help, and counseling support to assist the impacted workers during the transition following the job cuts. The company confirmed that support measures will be provided to all impacted employees, regardless of their nationality or job role. The staff were informed about the layoffs through an email sent by the company’s COO, Loh Yuh Yiing, and CTO, Kaythaya Maw.
Over the past three years, SPH has invested heavily in technology as part of its digital transformation, with a large portion of costs going towards payroll expenses. The technology division had to be restructured in order to tackle the financial challenges experienced by media companies worldwide as a result of decreasing revenues and increasing costs. Nevertheless, the company asserts that job redundancies were only considered as a final option.
Additionally, it was revealed that there are no intentions for further activities like this one, although it will still be important to conduct regular evaluations and maximize resources. The company confirmed that it had notified the Creative Media and Publishing Union (CMPU) beforehand about the job cuts and guaranteed that it had considered all other possibilities, such as relocating workers to different roles.
CMPU responded by stating that it will provide help to impacted members and employees through job matching, career guidance, and resources to help them move into new roles. Furthermore, union members can utilize a fund for skills enhancement and support services in times of financial need.
This new development follows SPH Media’s 2020 layoffs, which saw 140 employees lose their jobs in media sales and magazine operations due to the COVID-19 pandemic’s impact on advertising revenue. Afterward, the company moved its media business to a newly established public non-profit company.
In 2022, the government revealed a financial assistance of S$900 million for SPH Media Trust for the next five years, to aid the company in adapting to the changing media environment. By FY2023, SPH Media encountered difficulties in achieving its KPI goals for digital reach, youth reach, and vernacular reach.
Although the company utilized the funding effectively, there are still areas where SPH Media must make significant advancements, according to Minister for Communications and Information Josephine Teo. The company failed to meet another KPI goal of keeping the average time spent on its websites and apps, resulting in a deficit in pledged funding.
