KUALA LUMPUR – Media Chinese International Ltd (Mediac), the publisher of China Press, Sin Chew Daily and Nanyang Siang Pau, is mulling job cuts as part of its ongoing restructuring efforts.
According to Kenanga Research, the company estimates that its workforce may potentially be reduced from 1,800 to around 1,000 employees in the near future.
Following substantial losses in the financial year 2023-24, Mediac is optimistic that the “worst is over” and expects improved financial results in the coming years.
With manpower comprising the most significant cost driver, accounting for about 50% of its expenses, Mediac is focusing on downsizing and encouraging multitasking among its staff, Kenanga said in a company update.
In addition to workforce reductions, the company is considering closing its printing plants in Johor and Penang if publishing costs continue to rise, consolidating operations at its Petaling Jaya facility.
“To recap, manpower comprises the most significant cost driver for Mediac, accounting for 50% of costs, followed by newsprint (20%).
“On top of that, if unit publishing costs increase further in the future, Mediac may shutter its printing plants in Johor and Penang. Thereafter, it would centralise print operations at its plant in Petaling Jaya, Selangor,” Kenanga said.
Embracing the AI era
In response to the evolving media landscape shaped by generative AI, Mediac is exploring potential revenue streams from its intellectual property and news content.
This strategy is inspired by recent industry developments, such as News Corp’s content-licensing agreement with OpenAI, which could be worth over US$250 million (RM1.17 billion) over five years.
“Nearer to home, Mediac is collaborating with local publishers via the Malaysian Newspaper Publishers’ Association to collectively approach and engage multinational AI companies on this matter.
“Nevertheless, given its niche in Chinese-language content, Mediac is more sanguine of reaching commercial agreements with emerging AI players in China, such as Baidu, Tencent, etc.”
To enhance operational efficiency, Mediac is evaluating AI tools that streamline content distribution. These tools enable the publication of news articles across multiple digital platforms with a single click and can generate videos and digital human presenters to narrate news content.
Mediac estimates that adopting these AI technologies could lead to a workforce reduction of at least 30% within two years. To prepare for this transition, the company has initiated internal training programmes to equip its staff with the necessary AI skills, Kenanga said. – May 30, 2024