BDFM is looking to retrench 32 members of its staff in a bid to cut costs by as much as R12 million, the Sunday Times reports.
In its reporting of Times Media Group (TMG) acquiring a 32.26% stake in Ghana’s Multimedia Group Limited on Tuesday (17 September), Business Day announced that “the financial news division of Times Media Group, BDFM, is looking to retrench some editorial staff in a bid to cut costs.”
According to the Sunday Times, BDFM editor-in-chief Peter Bruce said shareholders had directed BDFM to cut editorial costs by at least R12million by the end of the 2013-14 financial year.
This could not be done without reducing heads, he wrote in an e-mail to staff.
According to the report, staff have until September 29 to take the packages, after which BDFM will embark on forced retrenchment.
Andrew Bonamour, chief executive of TMG, said the cuts were needed as the subsidiary’s editorial costs were too high.
“It’s very simple, BDFM loses money,” he reportedly said.
“It has done so for 10 years. Its editorial costs are too high given its circulation and revenue generated. It currently has a bigger editorial budget than Sunday Times, to put it into perspective.”
Times Media acquired BDFM from the UK’s Pearson Overseas Holdings in April 2013. BDFM publishes business titles including Business Day, Financial Mail and is the parent company of Summit TV.