KUALA LUMPUR, Sept 15 — The Star Media Group Bhd has informed employees that it will undertake a retrenchment exercise after a previous mutual separation scheme failed to meet its jobs reduction target.

According to leaked internal circular, group chief financial officer Sam Au said disruptions to business meant they “no longer need the same number of people to sustain the business”.

“The objective behind the exercise is to reduce the Group’s headcount in line with the contraction in the overall business.

“The contraction basically is attributed to constant disruptions to the media industry, mainly from digital elements, as well as due to the prolonged impact of the Covid-19 pandemic,” he said in the circular.