KUALA LUMPUR — Sept. 15, 2020: Star Media Group will undertake a retrenchment exercise, its third cost cutting move since 2017, after a mutual separation plan failed to meet its target.
The reason is that disruptions to business, especially from the digital segment, means that the group doesn’t need the same number of employees to sustain its business.
Additionally, the impact from the Covid-19 pandemic has only worsened an already gloomy environment.
The staff have been informed via a circular from group chief financial officer Sam Au.
The group had earlier tried the mutual separation scheme plan but the response was below expectations.
Other media groups in Malaysia have been facing tough times, including Media Prima, the Utusan Melayu Group and magazine publisher Blu Inc. Media, which closed on April 30, bringing down with it titles that included CLEO, Cosmopolitan, Her World and Female.
This was followed by Media Prima which in June issued a notice to 300 employees who were due to leave on July 31.