SPH Media, publisher of national newspapers like The Straits Times and Lianhe Zaobao, announced today (4 November 2024) the layoff of 34 employees from its technology division, representing about 10% of its tech workforce.
This reduction comes as the company reorganises its technology operations following three years of extensive digital investment aimed at revamping its digital infrastructure.
Here’s why.
Everything About SPH Media’s Latest Layoff, Which Affects 34 People
The layoffs mark a shift in SPH Media’s digital strategy after an “urgent and aggressive” technology ramp-up that began in 2021.
The company initially accelerated its digital transformation to compensate for previous underinvestment and to stay competitive within the fast-paced digital media sector, according to chief operating officer Loh Yuh Yiing.
However, the recent tech drive has come at a high cost, with technology expenditure now making up nearly 20% of SPH Media’s annual expenses.
Payroll alone accounts for nearly two-thirds of this tech spend.
According to The Straits Times, Loh explained in an email to employees that while the ramp-up had been essential, SPH Media could no longer sustain this level of expenditure beyond 2024.
The decision to reduce manpower, though challenging, was made after other cost-reduction measures, such as scaling back non-payroll expenses, proved insufficient.
“In this challenging environment, SPH faces similar pressures to those confronting media companies worldwide, including declining revenues and rising digital costs,” Loh added.
Support for Affected Employees and Future Plans
In a statement to the media, SPH Media confirmed that affected employees would receive comprehensive severance packages that comply with Singapore’s tripartite guidelines.
Career coaching, job placement assistance, and counselling support will also be provided to aid in their transition.
SPH Media stated it has no plans for additional layoffs but will continue to evaluate its workforce and resource allocation to align with business needs.
Loh reiterated that the priority moving forward is to stabilize tech operations and spending, ensuring a sustainable future for SPH Media in a highly competitive media environment.
Organisational Changes in Tech Operations
Alongside the layoffs, SPH Media announced a reorganisation within its technology division, effective 5 November.
The division will now operate under three main departments: the CTO Office, the Information Technology (IT) department, and the Product and Engineering department.
Jensen Boey will lead the CTO Office, reporting to chief technology officer Kaythaya Maw, who will also oversee Product and Engineering on an interim basis. Christopher Lim has been appointed to head the IT department.
Additionally, the data team, which includes data science, analytics, and data engineering functions, will transition from the technology division to a standalone business insights and analytics unit under the corporate operations pillar, reporting directly to Loh.
This realignment aims to bolster company-wide strategic decision-making.
Loh noted that this restructuring “will enable clearer leadership focus and accountability” across key areas like tech administration, IT infrastructure, and digital product development.
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