KUALA LUMPUR – Some 50 editorial staff from The Star are among more than 100 employees who received retrenchment letters yesterday.
This comes after several downsizing efforts in 2013, 2017 and 2018, reported Malaysiakini.
It was reported that The Star embarked on a retrenchment exercise after a low uptake of its mutual separation scheme (MSS) offered in the middle of this year.
Quoting a source, Malaysiakini reported that The Star employees expressed their disappointment with chairman Datuk Fu Ah Kiow over the video-streaming service Dimsum Entertainment.
The service has recorded millions in losses but remained operational.
In Q3, the Star Media Group posted a net profit of RM26.9 million, but was accrued following an award of damages.
Meanwhile, the retrenchment was reportedly criticised by Malaysian Trades Union Congress (MTUC) president Datuk Abdul Halim Mansor.
He was quoted as saying that MTUC had received reports on discrimination in how the exercise was carried out.
“It looks like the employees are falling victim to poor management. I am especially concerned about the more senior staff members who will struggle to find new jobs,” he was quoted as saying.
In 2013, The Star had nearly 2,000 employees but after this retrenchment exercise, it is expected that fewer than 1,000 will remain. – The Vibes, December 3, 2020
