Next Media Ltd. (00282.HK) will shed about 110 workers as it steps up the consolidation of its publishing and printing businesses in Hong Kong.
The downsizing is expected to cost HK$30 million in severance compensation, the Hong Kong Economic Journal reported on Thursday, citing a company spokesman.
The workers’ union has no plans to go on strike after the company promised to give priority to the employees’ interest, the report said.
The company is also writing down HK$97 million of impairment related to the valuation of the title and publishing rights of its Sudden Weekly magazine, which has stopped publication.
The magazine’s online edition has also been scrapped.
The writedown, which is still pending audit and verification by an independent assessor, would have an impact on the company’s interim results for the six months to September, Next Media said in a filing with the stock exchange.
The company has also proposed to change its name to Next Digital Ltd. to better reflect its move towards digital publication in Hong Kong. The shift will mean more free content to be distributed online and via mobile devices.
The plan will not affect the company’s newspaper and online businesses in Taiwan, the report said.
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