SPH Media lays off 34 employees in technology division

SINGAPORE: A total of 34 employees in SPH Media’s technology division have been laid off, the company said on Monday (Nov 4).
The cuts affect employees across various teams and ranks, and account for about 10 per cent of the division, reported The Straits Times, which is published by SPH Media.
“To remain competitive and sustainable amidst the changing media landscape, SPH Media has restructured its technology team,” a company spokesperson said in response to CNA’s queries.
“This includes streamlining its operations and resourcing across different technology functions.”
The company spokesperson said the decision was made after “careful consideration and exploring various alternatives”.
“SPH Media is committed to supporting the affected employees and providing them with comprehensive severance packages that adhere to tripartite guidelines, career coaching, job placement assistance and counselling support to help ease their transition,” the spokesperson added.
In response to CNA’s queries about the nationalities of the retrenched employees, SPH Media said it was unable to disclose further details, adding that its severance package and other support measures apply to each affected employee regardless of nationality and profile.
SPH Media was formed in 2021 after the former Singapore Press Holdings was restructured and delisted.
It also publishes The Business Times and Lianhe Zaobao, among other titles.
Various functions in the technology division have been streamlined, resulting in job cuts, said the company’s chief operating officer Loh Yuh Yiing and chief technology officer Kaythaya Maw in an e-mail to staff on Monday morning.
The company has accelerated its digital transformation over the past three years, and this required an “urgent and aggressive” ramp-up in various areas of technology, said Ms Loh, according to The Straits Times.
However, this ramp-up was not at a level that the company could afford to sustain beyond 2024, she reportedly said.
Nearly 20 per cent of SPH’s annual cost is spent on technology, with payroll-related expenditure accounting for almost two-thirds of this.
The COO noted that media companies globally are grappling with persistent declines in revenue and growing costs.
“SPH too, faces similar pressures to find a sustainable way forward,” she said, adding that job redundancies were considered as a last resort.
Ms Loh said there are no plans for “further exercises of this nature”, although “regular review and resource optimisation” would continue to be necessary, The Straits Times reported.
SPH Media is unionised under the Creative Media and Publishing Union (CMPU).
In response to CNA’s queries, the union said it was informed about the layoffs in advance and was assured by SPH Media that it had explored all alternative options, including redeploying workers to other suitable positions. 
“CMPU has worked with SPH Media to ensure that affected members and workers are offered fair compensation packages and provided with the necessary support while they transit to their next job,” it added. 
Representatives from CMPU and the National Trades Union Congress’ Employment and Employability Institute were at SPH Media on Monday to offer job matching and career advisory support and resources for the displaced workers, said CMPU.
Affected union members have access to a fund to offset training course fees if they need skills upgrading, the union added.
“CMPU will also assist members who may face financial hardship via various assistance programmes.” 
In 2020, the company laid off 140 employees from its media sales and magazine operations. The restructuring exercise was conducted to address the impact that the COVID-19 pandemic had on its advertising revenue.
The following year, its management announced that its media-related business would be transferred to a newly formed public company limited by guarantee.
The government announced in 2022 that it would provide up to S$900 million (US$680 million) in funding support for SPH Media Trust over the next five years.
In an update in parliament in March this year, Minister for Communications and Information Josephine Teo said while the funding had been put to good use, there was still “considerable catch-up” for SPH Media to do.
For FY2023, SPH Media failed to meet their digital reach, youth reach and vernacular reach key performance indicator (KPI) targets. 
It also did not manage to meet another KPI target of maintaining the average time spent on its websites and apps.
The company did not receive the full funding that was committed, said Mrs Teo.