At least 40 editorial staff members among over 100 retrenched by The Star
Star Media Group issued retrenchment letters to more than 40 staff members in its editorial wing, referred to as "Content", as a total of more than 100 employees were retrenched in a downsizing exercise yesterday.
It is the group's fourth major shedding of staff in the last seven years following a voluntary separation scheme (VSS), mutual separation scheme (MSS), and an early retirement offer (ERO) that were carried out in 2013, 2017, and 2018.
"While employees in the previous exercises were...
Star Media Group issued retrenchment letters to more than 40 staff members in its editorial wing, referred to as "Content", as a total of more than 100 employees were retrenched in a downsizing exercise yesterday.
It is the group's fourth major shedding of staff in the last seven years following a voluntary separation scheme (VSS), mutual separation scheme (MSS), and an early retirement offer (ERO) that were carried out in 2013, 2017, and 2018.
"While employees in the previous exercises were given a choice, this time there is no option," a source from The Star told Malaysiakini.
It is understood that the company opted for retrenchment after the poor uptake of an MSS offer in the middle of this year.
"The staff is despondent and upset with the leadership of chairperson Fu Ah Kiow, particularly as his pet project 'Dimsum' is bleeding millions but still allowed to continue," said the source.
Dimsum Entertainment is a video streaming service.
In the third quarter of this year, Star Media Group posted a net profit of RM26.9 million, which led staff to believe that the exercise may be deferred.
However, it is noteworthy that the profit was due to the award of RM50.542 million in damages for a court case against Jaks Resources Berhad over a mixed development project in Section 13, Petaling Jaya.
Possible discrimination in exercise
Malaysian Trades Union Congress (MTUC) president Halim Mansor (below) said he was disappointed to hear of the retrenchment and urged the company to consider other alternatives such as pay cuts.
He added that the MTUC had already received reports that there was discrimination in how the exercise was carried out.
Halim said that the government should take steps to prevent companies from retrenching staff at this time.
“When a company retrenches staff, it is taking the easy way out. The government should stop companies from retrenching staff during this period.
“It looks like the employees are falling victim to poor management. I am especially concerned about the more senior staff members who will struggle to find new jobs," he said.
Halim also questioned if Dimsum staff was being retrenched, adding that it was believed that the project had resulted in millions of ringgit of losses.
In announcing the headcount reduction exercise in September, the company offered a rate of 0.5 months for each year of service to executives and managers, while unionised staff members received a substantially higher rate of 1.5 months per year of service.
The company's staff strength, which was estimated at nearly 2,000 at its peak around 2013, is now believed to number less than 1,000 after this latest exercise.
The office of chairperson Fu declined to comment while attempts to get a response from former Star CEO Wong Chun Wai were also unsuccessful.
Wong is believed to be leaving the company this month when his contract as group adviser expires.
The source also said The Star's executive content officer Rozaid Abdul Rahman is set to move to Sinar Harian as editor-in-chief following the passing of Baharom Mahusin.
This is the latest in a number of setbacks to hit the media industry.
In April, Blu Inc Media, which was responsible for 19 publications including Cleo, Female, Her World, Harper's Bazaar, Jelita, and Marie Claire, shut down operations with an estimated 180 staff members losing their jobs.
The Edge Financial Daily also announced on April 21 that it would cease publication of its daily paper after a 13-year run.
In October last year, Utusan Malaysia officially ceased operations 80 years after the Malay daily was first published. It began as Utusan Melayu in Jawi in 1939. However, it has since resumed publication.
This came after long-running dailies Tamil Nesan (1924-2019) and the print edition of the Malay Mail (1896-2018) ceased publications.
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