KUALA LUMPUR: A day after announcing a weaker financial performance for the first nine months of the year, the country’s largest media group, Media Prima Bhd, announced it would reduce the number of employees by offering them a one-off payment.
In a statement, Media Prima said the mutual separation scheme (MSS) would be implemented from yesterday and be completed on Dec 15.
The statement said the exercise was part of a long-term business strategy to maintain the group’s standing and allow it to be more resilient against intense industry competition and an increasingly challenging environment.
While details of the number of employees who will be affected by MSS exercise was not divulged, sources said there may be a reduction of between 15% and 20% of the total headcount.
The group said the MSS would also help enhance productivity by allowing it to reorganise its manpower strength.
The statement said the MSS would allow employees to explore opportunities outside Media Prima and that outplacement programmes would be offered to employees who needed assistance.
On Thursday, Media Prima announced that the group had recorded a revenue of RM1.1bil and net profit of RM105.02mil, a drop of 12% and 30% respectively compared with the year before.
Its chairman Tan Sri Johan Jaafar said the weaker performance could be due to market uncertainties, weaker consumer sentiment and the tragic incidents involving flights MH370 and MH17.
He said the tragedies resulted in advertisers being more cautious over ads placed during the period.