SPH cuts salaries up to 10%

Asian media giant Singapore Press Holdings (SPH) said on Thursday it will cut monthly staff salaries by between 2 and 10 per cent to reduce costs as revenues fall.

The salary cuts, which will take effect next month, and lower profit-related bonuses will enable the company to trim its wage bill by 20 per cent, SPH said in a statement.

The wage cuts will affect about 3,000 staff, with higher paid employees bearing the brunt of the reductions, it said. SPH added that it would freeze hiring and cut operating expenses, without giving details.

‘We need to bring our costs down in the face of a weaker advertising market and uncertain business environment,’ said SPH chief executive Alan Chan.

‘It is imperative that we prepare for a longer than expected downturn so that we can emerge stronger when the economy recovers.’

Profit-related bonuses will also be slashed, with senior management expected to see a reduction of about 30 per cent in their total annual remuneration, the company said.

SPH has seen its income affected by the global economic downturn with net profit in the first quarter to November falling 34.8 per cent to $73 million (US$47 million). — AFP

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