Chinese Media Group In Malaysia May Lay Off 44% Of Employees & Replace Them With AI
Media Chinese International Limited could shrink its 1,800 workforce to around 1,000 within two years.
By Yap Wan Xiang — 31 May 2024, 02:04 PM
A Chinese media group in Malaysia may lay off 44% of its staff members and integrate artificial intelligence (AI) into its operations, said Kenanga Investment Bank
The research house noted in a report that Media Chinese International Limited — the parent company behind China Press, Sin Chew Daily, and Nanyang Daily, among others — will conduct the layoff exercise as part of an ongoing restructuring, reported FMT.
The group could shrink its 1,800 workforce to around 1,000 within two years.
The drastic job cut announcement came after Media Chinese suffered a net loss of RM61 million for the financial year ending 31 March, its biggest loss since 1998.
Media Chinese is the first dual-listed entity on the Stock Exchange of Hong Kong Limited and Bursa Malaysia Securities Berhad. Its product portfolio spans Southeast Asia, the greater China, and North America, and includes newspapers, magazines, and books.
Sibu-born Tan Sri Tiong Hiew currently serves as the group's honourary chairman.
According to Kenanga Investment Bank, Media Chinese may work with emerging AI players in China, such as Baidu and Tencent, to produce Chinese language content
The research house said Media Chinese is collaborating with local publishers through the Malaysian Newspapers Publishing Association to "collectively approach and engage multinational AI companies", reported The Edge.
A similar move occurred in the West, with OpenAI partnering with news outlets to train its AI model and feature news on the AI platform.
Last week, OpenAI signed a five-year agreement with News Corp, the parent company of the Wall Street Journal and the New York Post, to access both current and archived content.
The Guardian reported that UK-based Financial Times also signed a deal with OpenAI to license its content to develop AI models.
Media Chinese's plan to lay off employees is not unprecedented in Malaysia. Last year, Astro Malaysia Holdings implemented a voluntary separation scheme to reduce operating expenses.
Previously, Media Prima and Star Media Group have also adopted similar measures.
