Business Day culling staff: report
Times Media Group is set to axe staff at Business Day and Financial Mail in a bid to cut costs by approximately 15 million rand ($1.51 million) annually, according to Bloomberg, citing the company’s editor-in-chief, Peter Bruce.
The media group said BDFM Publishers would employ “closer to 100 than 150” employees following the retrenchment process the cuts.
“The unit has about 150 staff now,” Bruce told Bloomberg. “We’re near to the bottom of the cycle.”
Last month, the Sunday Times reported that BDFM was looking to retrench 32 members of its staff in a bid to cut costs by R12 million.
Staff had until September 29 to take any retrenchment packages, after which BDFM would embark on forced retrenchments, the Sunday paper wrote.
Times Media has appointed a committee of managers to present proposals on where it can reduce staff by the end of the week, according to an internal e-mail sent to employees.
In September, TMG reported that revenue from continuing operations for the year ended June 2013, declined to R3.899 billion, from R3.949 billion before, while profit from operations slipped to R6 million, from R172 million. Profit from discontinued operations improved to R83 million.
It reported a diluted headline loss per ordinary share from continuing operations of 16 cents, compared to headline earnings of 5 cents.
TMG said its media division incurred retrenchment costs amounting to R8 million. “These staff cut-backs will, however, result in annual savings of R18 million going forward. The majority of staff cut-backs were in the support services departments,” it said.
The group bought the 50% of BDFM it didn’t already own from Financial Times owner, Pearson, in April.
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