The announcement of further retrenchment of 140 staff by Singapore Press Holdings (“SPH”) seems to be pointing to losses in the Media segment. This is really bad news. Hopefully, with the layoff of 140 staff, this will bring back the medium term financial results for Media to at least sustain itself on a break-even point. This is one of my key assumption. Else it means that the property segment will be subsiding a loss-making business which does not make any sense for its long term viability.
|PayScale Industry Singapore Media Benchmark|
- One off impairment charges of S$8Mil in Q4 FY2020 for the layoff of 140 staff from Media Solutions Division and SPH Magazines.
- Strangely, no cost savings numbers were furnished. But let’s do a simple mathematical extrapolation ourselves. Using data from PayScale SG, average salary we are looking at is +S$51,842 per annum per headcount. Hence based on 140 staff, we are looking at expected savings of +S$7.3Mil per annum from this restructuring exercise for the next financial year.