SPH Media announces layoff of 34 employees amid restructuring of tech division
SPH Media is laying off 34 employees — approximately 10% of its tech division — as part of a restructuring effort aimed at achieving more sustainable operations.
The announcement was made by chief operating officer Loh Yuh Yiing and chief technology officer Kaythaya Maw in an e-mail broadcast to staff at 9.25am on Monday (4 Nov), as reported by The Straits Times (ST).
Source: GitHub
Describing the decision as “difficult,” they explained that the layoffs were necessary due to adjustments in the scope and size of several teams.
They also confirmed that there are currently no plans for further cuts.
Ramp-up not sustainable beyond 2024
In their open letter, the two chiefs explained that SPH Media required an “urgent and aggressive” ramp-up in capacity and investment within its technology division following the delisting of Singapore Press Holdings from the Singapore Exchange (SGX) in 2021.
This ramp-up was essential to “catalyse and power the earlier phase of transformation”, resulting in the company’s technology expenditure rising to nearly 20% of its annual costs.
However, Ms Loh and Mr Maw acknowledged that this level of spending is not sustainable beyond 2024.
Source: SPH Media
Over the past three months, the company has reviewed the operations and cost structure of its technology division, initially tightening non-salary expenditures and continuously optimising contract resources in response to changing business demands.
While these measures have helped to reduce some expenses, adjustments to the workforce were unavoidable as salary-related costs account for nearly two-thirds of the division’s tech spending.
Consequently, these adjustments are necessary to achieve a more sustainable and stable operational state moving forward.
Employees to receive severance packages & job placement assistance
In light of this transition, Ms Loh and Mr Maw emphasised that their top priority is to provide essential care and support to all affected employees.
Affected employees will receive comprehensive severance packages in accordance with tripartite guidelines, along with career coaching, job placement assistance, and counselling support.
Looking ahead, the company’s focus will be on “steadying the ship” as it moves towards a more sustainable level of technology operations and expenditure.
This effort includes structural changes within the technology division.
The data science, analytics, and data engineering teams will be transferred from the tech division to the newly established business insights and analytics department.
Meanwhile, the restructured IT division will consolidate existing technology infrastructure, operations, cybersecurity, and corporate systems to streamline processes and optimise resources.
Additionally, the new product and engineering team will consist of the digital media products team and the engineering team, collaborating closely with newsrooms and commercial teams.
Also read: SPH Media has received S$320M in Govt funding & did not meet KPIs: Josephine Teo
SPH Media has received S$320M in Govt funding & did not meet KPIs: Josephine Teo
Have news you must share? Get in touch with us via email at news@mustsharenews.com.
Featured image adapted from Marketing-Interactive.
