KUALA LUMPUR – Media Chinese International, a major player in Chinese language media, is reportedly planning a significant reduction in its workforce, potentially cutting its staff by up to 44% within the next two years. This move comes as the company prepares to integrate artificial intelligence into its operations, an effort aimed at enhancing efficiency and reducing operational costs.

According to Kenanga Investment Bank, the implementation of AI technologies is expected to streamline various processes within Media Chinese International, making a large portion of the current workforce redundant. This drastic reduction underscores the growing impact of AI on employment within the media industry.

“Media Chinese estimates that its workforce may potentially be reduced from 1,800 to around 1,000 employees in future,” Kenanga said.

The media firm has purportedly begun training staff to sharpen their AI skills and adopt new tools.

“These AI tools can also generate accompanying videos, and render digital human presenters to narrate news content,” Kenanga added.

Media Chinese has indicated that labour is its largest expense, constituting approximately 50% of the company’s total costs.

Kenanga said the media company might consider shutting down its printing facilities in Johor and Penang to consolidate its printing operations at the central plant in Petaling Jaya.

This potential consolidation highlights the financial pressures faced by traditional print media, stressing the need for cost management in response to rising expenses. Centralising operations could lead to significant cost savings and more streamlined production processes, which are crucial for maintaining profitability.

Leveraging AI in news publishing

Media Chinese – the publisher behind major publications such as China Press, Sin Chew Daily, and Nanyang Siang Pau – is planning to join forces with other local publishers under the Malaysian Newspapers Publishing Association to engage with multinational AI companies, the Malay Mail reported.

This collaboration aims to leverage AI to enhance publishing efficiencies and content quality, indicating a shift towards digital transformation in the Malaysian media landscape.

While the shift to AI appears to be the primary reason behind the staff cuts, the overall decision was precipitated by other factors, including “the merger or consolidation of Sinchew and Nanyang group” and the likely “closure of Johor and Penang plants (provided the cost-saving measures are justified but not at the moment),” CEO Francis Tiong told The Business Times.

News industry layoffs across Asia

The past few months have seen other media outfits in Asia reduce headcount and streamline content production and delivery.

Last month, The Wall Street Journal moved its Asia headquarters from Hong Kong to Singapore and cut its media workforce in light of the exodus of other foreign companies from Hong Kong.

Back in April, Yahoo also disbanded its editorial and social media teams, letting go of 17 staff members in the process, as it refocused on its content curation service.

The most recent layoffs at Yahoo’s Singapore office were seen as “unexpected” despite the internet media company having initiated a broader restructuring program and shed 1,000 jobs globally in February 2023.