Troubled pay-television broadcaster StarSat, formerly known as TopTV, is being forced to retrench staff, according a report in the Sunday Times.

The newspaper says StarSat issued section 189 notices to employees last week and has blamed difficult economic conditions for the decision.

It quotes StarSat CEO Mike Dearham as saying in a letter to staff dated 10 September that “various methods to increase revenue and to cut costs have already been considered, but the stage has now been reached where other, more drastic measures have to be considered, which will mean that some positions will be affected”.

It has not been revealed how many staff may be let go.

StarSat parent On Digital Media (ODM) has been in business rescue for the past three years, but is expected to emerge from this soon.

First, though, it needs the transfer of its licence by communications regulator Icasa before finalising the process. Icasa is expected to make a decision in the coming weeks.

New StarSat investor, China’s StarTimes, is expected to help StarSat launch new products and services as it seeks to claw market share away from bigger rival MultiChoice.