Troubled pay-television broadcaster, StarSat, is planning retrenchments as "difficult economic circumstances" are having a ripple effect on its operations. This according to a report in the Sunday Times that says the pay-tv operators, formerly called TopTV, issued section 189 notices to staff last week.
The newspaper quoted StarSat CEO, Mike Dearham, in a company letter that said various methods had already been considered to increase revenue and cut costs.
"The stage has now been reached where other, more drastic measures have to be considered, which will mean that some positions will be affected," says Dearham.
StarSat's parent company On Digital Media, has been in business rescue since 2012, due to financial difficulty.
On Digital Media also recently made an application to the Independent Communications Authority of South Africa (ICASA), to transfer its network licence to StarTimes Media SA, which is controlled by Chinese media group StarTimes.
ICASA is expected to rule on the matter at the end of the month as the licence transfer remains the last outstanding requirement before the company can be taken out of business rescue.
Dearham says the company's board is still investigating possible solutions and did not disclose how many jobs would be impacted.
"Unfortunately, StarTimes cannot carry on indefinitely in this manner and in order to stabilise the financial position of the company, certain measures will have to be taken as soon as possible," adds Dearham.
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