SPH Media lays off 34 tech staff after reportedly claiming “no such exercise” days earlier—The Edge Singapore reports

SINGAPORE: SPH Media announced the layoff of 34 employees from its technology division on Nov 4, roughly 10% of the department’s workforce, citing the need to cut costs as tech expenses have grown to nearly 20% of the company’s yearly budget.

This decision follows SPH Media’s reported claims of “no such exercise” after The Edge Singapore contacted the media company about the rumoured layoffs on Oct 28. 

According to The Business Times and Lianhe Zaobao, both SPH Media publications, Chief Operating Officer Loh Yuh Yiing and Chief Technology Officer Kaythaya Maw informed SPH Media staff about the layoffs in a memo on Nov 4.

The executives explained that SPH Media had to “urgently and aggressively” recruit tech personnel after its restructuring in December 2021.

They said the “ramp-up was needed to catalyse and power the earlier phase of transformation.” However, they added, “it is not a level that we can afford to sustain beyond 2024.”

According to The Straits Times, Ms Loh noted that media companies worldwide continue to face persistent declines in revenue and rising costs due to rapidly changing audience demands in digital media.

She added that SPH is also under similar pressures to find a sustainable way forward.

To address these challenges, Ms Loh said that the company has focused on tightening non-payroll expenses while reviewing its technology operations and cost structures over the past three months.

Although these steps have helped reduce overall spending somewhat, staffing adjustments were unavoidable. The company has also decreased its reliance on contract workers as business needs have evolved.

Ms Loh said that job redundancies were considered only as a last resort.

She described this decision as difficult, stating that the layoffs and restructuring would help the technology division achieve a more sustainable state.

She said, “Our priority is to extend care and support to all affected colleagues as we navigate this challenging transition.”

While she mentioned that there are “currently no plans” for “further exercises of this nature,” she noted that “regular review and resource optimisation” will remain necessary as the company adapts to changing business needs.

SPH Media’s portfolio includes The Straits Times, The Business Times, and Lianhe Zaobao. /TISG

Read also: Analysts: Dyson’s one-day retrenchment notice to employees may have harmed its reputation despite abiding by the law