Staff redundancies to cost Next Media HK$30m
Media heavyweight plans to trim publications and rename itself, but its union is crying foul
One of Hong Kong's biggest media companies announced yesterday that it would spend HK$30 million to pay off employees who will be let go as it shuts down one of its titles.
Next Media is folding entertainment magazine Sudden Weekly and combining three other publications to cut costs.
The company also proposed changing its name to Next Digital "to reflect the strategic move of the group's business focus to align with its business nature and growth objectives," according to a statement it released to the stock exchange.
The announcement did not say how many staff the redundancy payment would be split between.
A Next Media representative said the company believed the proposed name change would "provide a clearer identity and image for the company". The name change is subject to the approval of shareholders and the Companies Registry.
On June 20, the company laid off 70 editorial staff members at the 20-year-old Sudden Weekly, which will run its final print and online issues on August 7.