Layoffs looming at StarSat: report - TechCentral

Layoffs looming at StarSat: report

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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.

“I would expect that the relationship with StarTimes is going to bring in new innovations,” ODM’s Eddie Mbalo said in a recent interview with TechCentral.  — © 2015 NewsCentral Media

 

5 Comments

  1. Do the right thing on

    Isnt there a pending legal case with its original shareholders , which could impact the transfer of the license ,what has been the outcome of this

  2. yes there is. rumour has it that the IDC agreed to buy out the founding shareholders who are cosatu, lereko and first national bank’s media arm and now are backing out as the company has been valued at over R2bill. however it seems that the IDC has already singed and have taken possession of these shares and on sold them at one cent to some senior management including CEO Mbalo and some politically connected cadres. there is also talk that some of the IDC board members are beneficiaries.

  3. How can anyone steal from COSATU workers, these people are the poorest of the poor in our country, shame on you. Why is the COSATU bosses not kicking ass???