Astro Malaysia Holdings Bhd will be undertaking a voluntary separation scheme (VSS) for staff given the challenging overall economic landscape.
Malaysia’s biggest direct broadcast satellite pay-TV service provider said the move would allow the group to further simplify the organisation, enhance operational efficiency and reduce annual operating expenses.
“The media and entertainment industry is currently operating in an environment that is experiencing an unprecedented rate of disruption. Industry players are required to reinvent and adapt swiftly to remain relevant in this new reality,” it said in a statement today.
“In an increasingly borderless and digital world, competition is relentless. Astro continues to be proactive to reinvigorate the group in order to strengthen its position in the market and to remain relevant in the years ahead,” Henry Tan, CEO Designate, Astro Malaysia Holdings Berhad said.
It is understood that Astro is expected to save about 15% or around RM80 million in staff costs, per year, from the VSS programme. Astro’ staff costs stood at RM590 million for its financial year ended Jan 31, 2018 (FY18).
Astro’s shares fell two sen or 1.45% to close at RM1.36 on Friday, bringing it a market capitalisation of RM7.04 billion. The counter saw 6.86 million shares traded. Year-to-date, the stock has slumped 47.5%.