Independent Media jobs on the line as company embarks on ‘further restructuring’

Executive chairperson Dr Iqbal Survé on Friday said the cost of running print titles had become unsustainable for Independent Media, Sekunjalo and the Survé family.

“Print media has been an iconic pillar of our company for decades, but the current business model is no longer sustainable in a world where digital platforms offer far greater reach and engagement opportunities,” he stated.

“After a thorough evaluation, the company has determined that further restructuring is critical to its long-term sustainability,” said Independent Media.

This comes on the heels of Media24 chairperson Ishmet Davidson’s announcement in June that the company board had approved the print closure of four titles — Beeld, City Press, Daily Sun and Rapport.

Media24 said it would be able to save 66 of an estimated 400 threatened jobs.

Read more: Media24 shutdowns — digital to retain 66 journos, but 334 jobs still on the line

Davidson said structural declines in circulation and advertising for decades, combined with rising fixed distribution costs, had a devastating impact on print operations.

“As a result, our titles in the northern region have been on life support for a while. Combined losses are projected to mount to R200-million over the next three years. After years of cutbacks, we’ve reached the end of cost reductions to try save these print operations. We’ve simply run out of options,” he explained.

Survé voiced similar sentiments, noting that the unsustainability of print, coupled with a dramatic decline in advertising and circulation revenue, was forcing many media houses to rethink their traditional models.

Independent Media retrenched a third of its staff in November.

Survé acknowledged that while every effort would be made to mitigate the effects of the restructuring, not all employees would transition into the expanding digital division.

“We will assist with transitions wherever possible,” he said.

An Independent Media spokesperson told Daily Maverick that no final decisions had been made.

“The consultation process has been initiated, and we are bound by the timeframes in terms of S189 (A) of the Labour Relations Act. The consultation process will shape the final outcome of what the restructured business will look like and which, if any, publications will be affected,” they said.

Independent Media has noted that a central factor driving the restructuring decision is the threat of the closure of the company’s banking facilities.

“Independent Newspapers’ reliance on advertising and circulation revenue, coupled with its lack of access to loans or banking facilities, places the business in a precarious financial position.

“The risk associated with losing banking support, particularly given the company’s cash-based operations, poses an existential threat. The restructuring is therefore essential to securing the company’s future and mitigating these banking risks,” the company stated last week.

It said rising operational costs (particularly those related to paper and print) accounted for 60% of the company’s expenses.

Read more: ConCourt turns down Sekunjalo appeal application against Nedbank

Just a week ago, the Constitutional Court unanimously turned down leave to appeal against a Supreme Court of Appeal finding which authorised Nedbank to close the accounts of the Sekunjalo group,which owns Independent Media. DM