Astro undertakes VSS to improve finances, cut expenses

Astro Malaysia Holdings Bhd will be undertaking a voluntary separation scheme (VSS) to allow the company to focus on core business activities and improve financial performance by simplifying the organisation, streamlining operations and reducing operating expenses.

In a filing with Bursa Malaysia today, the integrated consumer media entertainment company said the VSS aimed to support its ongoing transformation and is offered purely on a voluntary basis.

Group CEO Euan Smith said the media and entertainment industry is currently operating in an environment that is experiencing an “unprecedented rate of disruption”.

Therefore, he said industry players are required to reinvent and adapt swiftly to remain profitable and relevant in this new reality.

“In an increasingly borderless and digital world, competition is relentless, especially in a challenging economic landscape,” he said.

He said Astro continued to be proactive to reinvigorate the company to strengthen its position in the market and adapt to a fast-changing business environment.

Notwithstanding this exercise, Astro said it is putting in place measures to ensure customer experience would not be impacted by the VSS.

Additionally, it added that Astro has also put in place a transition programme that would provide the right support to employees who opt for the VSS, including coaching and skills upgrading training programmes.

The group’s shares fell half-a-sen or 0.9% to 53 sen, giving it a market capitalisation of RM2.76 billion.