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SPH to cut staff by up to 10%; My Paper, TNP to be merged

SINGAPORE — Due to headwinds in the industry and difficult economic conditions, Singapore Press Holdings (SPH) announced on Monday (Oct 17) that it will be laying off employees and merging My Paper and The New Paper (TNP) to form a revamped TNP.

Singapore Press Holdings. Photo: Google Street View

Singapore Press Holdings. Photo: Google Street View

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SINGAPORE — Due to headwinds in the industry and difficult economic conditions, Singapore Press Holdings (SPH) announced on Monday (Oct 17) that it will be laying off employees and merging My Paper and The New Paper (TNP) to form a revamped TNP.

This comes after a review of its core media business that will also see the company cut up to 10 per cent of its current staff force of more than 4,000.

The “right-sizing exercise” by the public-listed company, which reported an earnings slump last Friday, will be done over two years through attrition, retirement, non-renewal of contracts, out-placement and retrenchment.

The changes come after a five-month review to better serve its advertising customers across various media platforms.

“The group examined its product portfolio and identified areas to further enhance operational efficiency,” SPH said in a statement that was posted on the Singapore Exchange website on Monday evening.

The new TNP, which will be distributed free from December, will be published from Monday to Saturday, and have a circulation of up to 300,000, compared with the roughly 60,000 copies currently sold daily.

The job cuts are part of efforts to reduce operating costs.

“SPH will work with the relevant unions to ensure that fair terms are given to affected staff and will extend to them the necessary help to support them in their transition,” the company said in its statement.

Mr Alan Chan, CEO of SPH, said: “We have done a comprehensive business review to strengthen our position in a tough economic and media environment.

“Market conditions will remain difficult with the continuing disruption of the media industry.”

On Friday, SPH reported that its annual net profit plunged 17.5 per cent, as its core media operations continued to languish amid difficult market conditions.

For its fiscal year ended Aug 31, SPH’s profit attributable to shareholders fell to S$265.3 million, from S$321.7 million a year earlier. Operating revenue fell 4.5 per cent to S$1.12 billion.

Providing a cushion was the contribution from the company’s property segment, which reported property revenue rising 4.6 per cent to S$241.3 million, bolstered by higher rental and services income from the group’s retail assets including The Seletar Mall, which commenced business in November 2014.

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