Media Chinese International Ltd is slated to lay off at least 44% of its staff within two years as it integrates artificial intelligence (AI) into its operation, according to Kenanga Investment Bank.
This decision comes after the Malaysia-based Chinese media group reported its largest net loss since 1998, amounting to RM61 million (~S$17 million) for its most recent financial year ending 31 March 2024.
Source: Media Chinese Group
According to Kenanga, Media Chinese “believes it can extract significant cost savings by downsizing its workforce and encouraging its employees to multitask,” said The Edge report.
Among the titles under Media Chinese are China Press, Sin Chew Daily, and Nanyang Daily.
Besides experiencing its largest net loss since 1998, Media Chinese has suffered sharp drops in shares in recent years as it faced dwindling earnings and losses.
As part of its ongoing restructuring efforts, the company may reduce its workforce by up to 44%.
Source: Unsplash
“Media Chinese estimates that its workforce may potentially be reduced from 1,800 to around 1,000 employees in future,” Kenanga reported.
According to Kenanga, manpower is the most significant cost driver for the company, accounting for about 50% of its costs, reported Free Malaysia Today.
Media Chinese is partnering with local publishers through the Malaysian Newspapers Publishing Association to “collectively approach and engage multinational AI companies,” according to Kenanga.
To produce Chinese language content, it may also collaborate with emerging AI players in China, such as Baidu and Tencent.
Media Chinese has also begun training its staff on how to effectively use AI tools.
Also read: Yahoo to lay off 17 staff in S’pore as it shifts editorial strategy
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Featured image adapted from Media Chinese Group, Unsplash
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