Employees at ATV have been warned to be 'mentally prepared' for a new year pay freeze, while further redundancies cannot be ruled out.
The company, with 1,400 employees, sacked 135 workers in July, citing revenue losses and the need to restructure to compete with TVB.
Chief operating officer Bruno Wu Ching said at the time there would be no more mass dismissals.
But a company source said this week the firm might make further staff cuts, possibly laying off 10 per cent of the news staff, as well as freezing or cutting pay.
'Some people feel unstable. They are looking for new jobs,' one employee said.
'It's hard to know what is happening. A lot of stuff we read in the papers first. It would be no surprise if we got a pay cut, but it is more likely we will get a pay freeze.' Yesterday, an official gave a strong hint of an impending pay freeze.
Steve Loo Chung-keung, senior vice-president of finance, said there were no immediate plans for further layoffs or pay cuts, but he could not rule out the possibility.