Hong Kong’s biggest pay television provider i-Cable Communications fires 102 workers, but spares news department
- Company cites challenges for media industry and need to reduce operating costs as it cuts 6 per cent of workforce
Hong Kong’s biggest pay television provider axed 102 jobs or 6 per cent of its workforce on Friday in a restructuring, but spared cuts to its news department.
I-Cable Communications said the affected staff, including some managers, were from departments such as programme production, production service, network maintenance and installation, as well as corporate support.
The lay-offs signalled another alert to the struggling Hong Kong media scene, which saw two other companies firing workers earlier this year.
“In the face of changes to traditional mass media business models, the industry outlook is very challenging,” i-Cable Communications said on Friday.
It said the company’s accumulative loss over the past 11 years stood at more than HK$2.4 billion (US$307 million), while it suffered a loss of HK$456 million for 2018.
“Coupled with setbacks to an earlier fundraising plan, the urgency has increased for the company to further reduce operational costs,” it said.
The move came after local broadcaster Metro Radio fired seven employees, and said the reason was “to cope with Metro Radio’s future business development”.
“The company will keep enhancing and boosting its human sources according to its future development plan,” it said. “The move will not affect the radio’s daily operation.”
In February, online news platform HK01 also cut more than 70 workers – about nine per cent of staff – to “increase its operational efficiency”.
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Pro-democracy lawmaker Claudia Mo Man-ching said she was relieved the news department had not been affected.
“It’s obvious that i-Cable knows their biggest selling point is their news department,” she said.
“But I am a bit worried pay television in Hong Kong will face a more challenging time, or even come to a dead end.”
Mo said there are free televisions and a lot of free information online which compete with the business.
“This is an alarm to the future development of pay television,” she said.
A reporter working at the television station, who refused to be named, said they were not worried about losing their job.
“The company cares about the news department,” the reporter said.
The broadcaster’s rival, Television Broadcasts (TVB), also struggled financially last year.
It posted a net loss of HK$199 million for 2018, down from a net profit of HK$243 million a year earlier, mainly because of a write-off on bond holdings issued by Chinese theatre operator SMI Holdings Group.
Last June, TVB laid off around 100 staff amid what it said was a shift of strategy in a competitive market.
