It said it was due to the challenges posed by the changing market landscape and the trading environment.
Entertainment business Arena Holdings announced in a staff communication letter circulated on Friday that it was initiating a Section 189 restructuring process due to the challenges posed by the changing market landscape and the trading environment.
This would effect its news and entertainment businesses, it was reported on one of the group’s online platforms, the TimesLIVE on the weekend.
Arena Group Holdings owns titles such as Sunday Times, Business Day, Financial Mail and Sowetan.
The company has reportedly attributed the move to the challenges posed by the changing market landscape and the trading environment.
Acting CEO Pule Molebeledi told staff that while the company and its current owners had avoided going this route, it had “become inevitable to initiate a Section 189 process to ensure relevance and sustainability of the business”.
Consultations with all affected employees would start immediately.
“We are aware that the current situation is going to be difficult, especially for those affected by the restructuring,” said Molebeledi.
“But as we propel Arena into the future, we need to confront the brutal facts, but we will never lose the faith. This is a future that requires new skills, mindsets and dynamic business models.”
The news of the restructure comes hot on the heels of the news in August that its CEO Mzi Malunga would leave the company at the end of August.
Arena last month said it had reached a “mutual separation” agreement with Malunga, who has been serving in the role since May 2022.
Malunga's predecessor, Andy Gill, had been in the post for less than two years.
* Correction: This story has been updated. An earlier version of this story erroneously referred to former CEO Mzi Malunga as having worked at Sunday World and connected to a report that was published by GroundUp. This was not the case; we apologise to Malunga for the oversight.