SPH Media lays off 34 technology staff amid restructuring efforts

SPH Media, the publisher of The Straits Times and Lianhe Zaobao, announced on 4 November the layoff of 34 employees from its technology division, accounting for approximately 10% of the unit, according to a report by The Straits Times.

The decision was revealed in an e-mail from Chief Operating Officer Loh Yuh Yiing and Chief Technology Officer Kaythaya Maw, which detailed the strategic restructuring aimed at consolidating functions and reducing job redundancies.

In the e-mail sent at 9.25 am, the executives acknowledged the difficulty of the decision, stating: “This was a difficult decision that we have had to make.”

SPH Media emphasised in a separate media statement that the layoffs came after careful consideration, as the company seeks to navigate the evolving digital media landscape amid financial pressures.

The affected employees will receive severance packages in accordance with tripartite guidelines, alongside career coaching, job placement assistance, and counselling support to aid in their transition. This gesture underscores SPH Media’s commitment to support the well-being of its workforce during this challenging phase.

Formed in 2021 after the restructuring and delisting of Singapore Press Holdings, SPH Media has focused heavily on digital transformation over the past three years.

The company described its efforts to “ramp up” its technological capabilities as necessary to bridge years of underinvestment and meet the fast-changing demands of digital media.

Ms Loh highlighted that while these significant investments were vital for initial transformation, sustaining them at current levels beyond 2024 was financially unfeasible.

Currently, technology-related expenses make up about 20% of SPH Media’s annual costs, with payroll contributing to nearly two-thirds of this figure.

Globally, media organisations face similar financial constraints, attributed to shrinking revenues and increasing costs tied to evolving audience preferences.

“SPH too, faces similar pressures to find a sustainable way forward,” Ms Loh noted. Prior to these layoffs, the company had already undertaken a three-month review focused on tightening non-payroll expenditures.

While non-payroll cost-cutting measures helped mitigate some financial strain, adjustments to staffing levels became unavoidable.

The company also reduced its dependence on contract resources where business needs had shifted. Ms Loh stated that job cuts were considered only as a last resort, aiming to bring the technology division to a more balanced operational state.

Ms Loh reassured staff that further redundancies were not planned at this time, though she acknowledged that continuous resource optimisation would be necessary. “Going forward, our focus will be to steady the ship as we transit towards a more sustainable level of Tech operations and expenditure,” she said.

Coinciding with the layoffs, SPH Media announced a reorganisation of its technology division, effective from 5 November.

The restructured unit will consist of three main departments: the CTO Office, led by Mr Jensen Boey; the Information Technology department, headed by Mr Christopher Lim; and the Product & Engineering department, which Mr Maw will lead in the interim.

Additionally, the current data team—responsible for data science, analytics, and data engineering—will be moved out of the technology division. This team will become a standalone business insights and analytics department, reporting directly to Ms Loh to enhance strategic alignment at the corporate level.

Ms Loh stated that this new organisational structure aims to sharpen leadership focus and improve accountability across areas like IT infrastructure, administration, and digital product development.

The restructuring follows recent government disclosures regarding financial support to SPH Media. In February 2022, the government announced a budget of up to S$900 million to be disbursed over five years to support the media group.

This funding is part of an initiative to enhance talent, technology, and vernacular capabilities in the face of industry disruption. About S$320 million has already been provided over the 2022 and 2023 financial years, with S$260 million budgeted for 2024.

Minister for Communications and Information Josephine Teo has highlighted that the funding aims to reinforce SPH Media’s digital transformation and support its strategic initiatives.

However, SMT did not meet certain performance targets for digital reach and engagement, affecting the disbursement of committed funds.