Overview of Layoffs at SPH Media

SINGAPORE – In a significant shake-up, SPH Media announced on November 4 that it will lay off 34 employees as part of a restructuring effort in its technology division. This move affects around 10% of the manpower within the tech department and was described as a necessary measure to streamline operations amidst growing challenges in the digital media landscape.

Communication of the Decision

The company's chief operating officer, Loh Yuh Yiing, and chief technology officer, Kaythaya Maw, communicated the tough decision through an email sent to staff early in the morning. They expressed the difficulties behind making such cuts, emphasizing that the decision followed careful consideration and aimed to optimize the company's tech capabilities for the future.

Support for Affected Employees

SPH Media, known for publications such as The Straits Times and Lianhe Zaobao, aims to support the affected employees significantly. The company has committed to providing comprehensive severance packages in line with tripartite guidelines, as well as offering career coaching, job placement assistance, and counseling services to ease their transition.

Background and Reasons for Restructuring

This restructuring comes after SPH Media underwent a transformation since its separation from the former Singapore Press Holdings in 2021. Over the past three years, the company has aggressively pursued digital innovations to recover from earlier years of underinvestment. The need for rapid enhancement in technology operations arose as the media landscape continues to evolve at a breakneck pace.

Financial Pressures and Operational Adjustments

Loh highlighted that heightened expenditure in tech currently represents nearly 20% of SPH Media’s annual costs, with payroll expenses accounting for a significant portion. The company faces ongoing pressures from declining revenue trends observed across the global media industry and rising costs associated with fulfilling fast-changing audience preferences in digital content.

New Operational Framework

To address these financial strains, management had initially tightened non-payroll expenditures. However, after reviewing the tech operations and cost structures extensively in the last three months, it became clear that payroll adjustments were unavoidable. Loh acknowledged that layoffs were considered only after exhausting other options.

Reorganization of the Technology Division

Additionally, the restructuring within the technology division will implement a new operational framework beginning November 5. The department will be reorganized into three distinct branches: the CTO Office, the Information Technology department, and the Product and Engineering department. Each of these groups will have dedicated leadership to enhance accountability and performance outcomes.

Future Leadership

Jensen Boey will head the CTO office, Christopher Lim will manage the IT department, while Kaythaya Maw continues to lead the Product and Engineering team on an interim basis. Furthermore, the existing data team will be transitioned to form a new standalone Insights and Analytics department, reporting directly to Loh to align with broader organizational strategy.

Conclusion and Outlook

While this restructuring signifies a major shift for the organization, both Loh and Maw reassured employees that the aim is to foster a more sustainable operational environment. Despite the current challenges, they expressed optimism about the company’s future direction, emphasizing a commitment to adaptability in the face of an ever-evolving media landscape.

As SPH Media navigates this challenging phase, stakeholders will be watching closely to see how these significant changes will impact not only the internal dynamics but also the company's overall positioning in the competitive digital media sector. Will this strategic overhaul enable SPH Media to reclaim its foothold in an increasingly digital world? Only time will tell.