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Alfred Lee30 Jun, 2020
The effects of the pandemic continue to excaberate businesses across the world.
In a recent statement, one of Malaysia's largest media and entertainment companies, Media Prima, is set to lay off up to 300 employees.
Employees affected have received notice of termination, and will serve up till 31st July 2020.
This move comes as the company faces revenue declines due to the pandemic, with the addition of macroeconomic challenges the media sector is facing due to digital disruption.
While the group posted a revenue of RM238.4 million for Q1 2020 as a whole (Q1 2019 was RM239.1 million), analysts are expecting its Q2 2020 revenues to fall sharply due to the pandemic.
Traditional revenues also fell by 7% as compared to the same period last year, signalling more cautious spending by advertisers.
Moving forward, the company will expedite its next phase of transformation exercises to remain sustainable for the long term.
"All parties understood the need for the business transformation and agreed to the mechanism of fair and equitable compensation to affected employees as governed by the law, respective union collective agreements and employment contracts," the group explained.