Media group Primedia says it has begun to inform staff of its intention to proceed with retrenchment consultations in accordance with part 189 of the Labour Relations Act.
This determination follows an in depth strategic evaluation course of which scrutinised each aspect of the enterprise, the group stated in an announcement on Thursday (16 July).
“The difficult financial atmosphere in South Africa, speedy technological change and new entrants within the media sector, has positioned important strain on media companies to adapt and evolve, with a purpose to keep related.
“This has been additional compounded by the Covid-19 pandemic, and South Africa’s nationwide lockdown on our key purchasers and industries.”
Primedia stated that vital consideration has been utilized to numerous initiatives to scale back the affect of job losses throughout the group.
Nevertheless, the group stated it has’ grow to be abundantly clear’ that it can not efficiently pursue the required strategic imperatives and guarantee sustainability in the long run in its present modality.
“The anticipated affect on our folks is a watershed second for us, as an organisation that recognises their significance in all we do and what we signify,” stated Phumzile Langeni, interim chief government officer.
“This can be a sustainability technique we had hoped to not need to deploy. We’re dedicated to managing this course of with sensitivity and consideration to all affected staff whereas following the method set out in regulation.”
South Africa’s media has been notably exhausting hit by the nation’s coronavirus lockdown.
On 7 July, Media24 introduced numerous closures and restructuring in its newspaper and journal portfolio, which can have an effect on 1,100 positions.
The group stated that it’s going to contemplate the closure of 5 magazines and two newspapers, outsourcing and decreasing the frequency of its remaining month-to-month magazines, taking two newspapers digital-only and decreasing workers in associated assist providers.
This follows the same transfer by Caxton Publishing in Might 2020, the place it introduced that it could exit the print media enterprise.
The closure of its journal division impacted 10 well-known publications in South Africa, particularly: Bona, Nation Life, Necessities, Meals & Residence, Backyard & Residence, Folks, Rooi Rose, Vrouekeur, Lady & Residence and Your Household.
Caxton cited the identical reasoning as Media24 within the announcement: declining revenues within the print media house on account of the Covid-19 pandemic, which exacerbated the regular decline seen within the sector earlier than the disaster hit.
Learn: Media24 pronounces journal and newspaper closures – extra jobs affected