Johannesburg - Panic reigned at the 24-hour news channel eNCA this week over possible staff cuts as its owner, Sabido Investments, considers shutting down some of its loss-making units.
The company said on Friday it might have to shut down its Natural History and Factual Division units, which have been incurring sustained losses and do not appear to have the potential to turn around its fortunes.
Staff at the independent broadcaster were informed this week that it might have to retrench.
Discussions have already started with those who may be affected.
Some affected staff members, who spoke on condition of anonymity, said they were shocked by the news as they had earlier been reassured that there would not be any retrenchments.
But the public announcements this week and internal communication from management confirmed retrenchments were a reality, particularly for those working at the affected units.
The company has already closed down its news broadcast on the Sky digital platform in the UK and has stopped broadcasting its Africa Channel in the same country.
Spokesman Vasili Vass said where it was not possible to absorb staff into different areas of the business, retrenchments were a reality.
“Discussions with personnel have commenced in both these areas. Where possible, staff have already or will be absorbed into other areas of the business where vacancies or new opportunities have opened up.
“Where this doesn’t happen, retrenchments will have to be considered,” said Vass.
The shutdown of some of the broadcaster’s units follows the closure of the 77-year-old SA Press Association (Sapa), which is set to file its last story on March 31.
Meanwhile, Sekunjalo Investment Holdings, one of the founding members of the African News Agency (ANA) and owner of Independent Media, announced on Friday that it had acquired ownership of Sapa’s archives.
The Sapa board has approved Sekunjalo’s bid to acquire Sapa’s assets, which included the brand name, news and picture archives.
“Our bid for the Sapa assets was extremely important and we are very happy that it has now been approved by the Sapa board,” Sekunjalo’s digital head and the chief executive of ANA, Chris Borain, said.
Borain said Sekunjalo had always wanted to protect and safeguard the Sapa brand and the important role it had played in the country’s media history.
The company had offered a partnership to Gallo and Moeletsi Mbeki’s KMMR, which had expressed interest in bidding for the national news agency, to see how they could possibly save Sapa and ensure it was commercially sustainable.
Earlier this month, Media24 digital division, 24.com, also announced it would be launching a news wire service next month.
The new service would be called News24Wire, with syndication and access being handled by Gallo Images.
Meanwhile, Sekunjalo said it would give Sapa’s existing staff preferential ability to apply for positions at ANA, subject to its normal recruitment processes.
“We continue to be in contact with existing clients and staff of Sapa to work with them in establishing an agency that will provide the quality diary and content service Sapa was known for,” said Borain.
The Sunday Independent