Renowned for ruthlessness when it comes to culling human resources, Naspers gave journalists and other workers at Media24 and Fin24 a rude awakening by telling them they may just have to start looking for other jobs. A communication from Fin24.com Chief Executive Officer, Tim Spira, invited staffers to participate in ‘voluntary retrenchments’. But not before wishing everyone a really good new year.
‘Self elective’ cuts will affect senior editorial staff at Rapport, Beeld, Volksblad and Die Burger. Senior editorial staff from City Press. Editorial staff within FinMedia24 and staff within McGregor BFA are also invited to hand in their notice.
What’s interesting about the cull is its focus on senior staff. This is in line with Koos Bekker’s thinking that young talent will drive digital ’success’ for Naspers. Bekker apparently doesn’t have a fondness for mature talent. Inside sources at Naspers reveal he recently said that people over 35 don’t understand the internet and can’t embrace the digital age.
“Hello everyone and all the best for a happy and healthy 2010. I hope you have had some quality time out and are returning ready and eager to tackle the opportunities and challenges that lie ahead.
Unfortunately, my first communication to you this year is dominated by some sobering news. As you are all well aware, the media industry – both in South Africa and internationally – is going through one of the toughest periods in living memory. Media24 and FinMedia24 have not been spared. While I am confident that this year will be a turning point in our division’s financial fortunes, performance to date necessitates that we review our cost structures to ensure that we are able to navigate the difficult months ahead and emerge from the current downturn a leaner and more streamlined organisation. This imperative extends beyond FinMedia24 to the broader Media24 Group.
Consequently, a decision has been taken by Media24 management to offer voluntary severance packages to qualifying staff within the following designated groups:
• Senior editorial staff in all the Afrikaans titles (Rapport, Beeld, Volksblad and Die Burger)
• Senior editorial staff from City Press;
• Editorial staff within FinMedia24; and
• All staff within McGregor BFA
Wilson Rooy shall be sending out a communication tomorrow outlining the details of this offer and how the process will work. However, in the meantime, I would like to highlight the following:
• This is strictly a voluntary severance offer: it is entirely up to you whether you want to apply for a package (it should nevertheless be noted that there is no guarantee there will not be mandatory layoffs in the future – possibly on less favourable terms – should financial performance not improve)
• Should applications be received from outside the groups designated above they will be assessed on a case-by-case basis
• The decision as to whether an application is accepted will be at the sole discretion of management (including the applicant’s direct manager, the CEO of Media24 newspapers and myself)
Wilson’s email will include details of whom to contact with queries, but please feel free to contact your line manager or myself with any questions.
I must emphasis that this decision is motivated not by any lack of confidence in the long-term prospects of FinMedia24 or any of its operating divisions, but is rather part of an ongoing effort to improve our operating efficiencies and enhance our competitive position as a forward-looking, integrated media business.
Kind regards
Tim“
This thing has 27 Comments
Imagine how weird it would be if you applied to be retrenched and were then denied… They’d all know didn’t want to be there. Awkwaaaaard.
It seems to me that the main reason they want shot of senior staff is so they can rather pay 6k CTC to young and desperate wannabe journos who’ll tolerate that crap because they think it’s a good way into the “glam” world of journalism.
That said, given Media24’s seeming fondness for simply re-writing news gathered elsewhere (mistakes and all), they could probably get by with a few literate chimps with a typing cert.
And they wonder why advertising revenues are down…maybe they should look at their product offering.
I wonder if Koos Bekker understands the internet, last times I checked he too was over 35….Just another example of sycophancy among big business and probably has more to do with Naspers transforming the “white racist press” than anything else. (of course the selected few whites at the top will continue to share the fruits with the selected few BEE members of the board.
Mmm. The dumbing down of newsrooms… I’m thinking of eTV’s young man-on-the-scene in Haiti referring to the devastated capital as Port au France – not once, but several times, in his report on Sunday evening. Perhaps he should have Googled it before he landed,just to make sure…
At last the truth is out! The majority of articles written for 24.com are by immature journo school graduates (hey 50% is a pass).
The response one gets from the so-called senior or editorial staff when contacted with a query or complaint, is equally immature and unprofessional.
I have seen the implementation of “savings strategies” at large corporates and the first thing that is recommended to them is to ban all access to any Media24 sites! Reduces bandwidth consumption, bandwidth requirements, improved employee productivity.
Let’s see if you still have a million impressions a month in the near future. Revenue from adverts will be reduced and more sloppy, rude bloggers will be out of work. Shame hey!
Pride or arrogance comes before a fall…
Naspers is making huge mistake, if they need to cut costs, LEAVE th senior editorial staff alone, without them, the standards of all media24 newspapers will decline.
If they need to cut cost, look at the advertising divisions of Naspers, so much repetition, agencies and clients sees quite a few people from media24, all selling the same titles, just different sections. WASTE OF TIME and MONEY, if you ask me.
Francois Groepe, should look at streamling ALL advertising divisions to eliminate duplication sales pitches.
Koos Bekker should take time out to see where the money is being wasted.
Management at Naspers is not truthfull to the newspaper staff (leave alone repaying loyalty). The reason for the retrenchments in 2009 and this new “disguised retrenchments” is to cull editorial staff to prepare for the launch of ONE nationwide newspaper on the lines of USA Today. The whispers are that the target date is in 2012. Management believes such a paper can be run with less people than is used to run the three regional papers today.
This could be song along the lines of “A happy new year to you and you and you … from naspers”. Much like they wished staff at Media24 East Africa a VERY merry christmas in november by announcing their retrenchments. It must be great to know your company values you and that the Koos-man, himself married to an(ex) editor, so cherishes the skills of those over-36 dinosaurs/journo’s. NOT.
that people over 35 don’t understand the internet and can’t embrace the digital age.
Bullshit! I’ve taught myself at the age of 50 to work with a computer, without help. Only used a Word Pefect manual. Now, at the age of 66, still going strong, can even show a few youngsters a thing or two!
This is the typical behaviour one can expect from Koos Bekker who in my mind has never known the meaning of the word sensitivity. This is a huge crisis for him. Koos, its time to go yourself and to be replaced by a true leader. Koos has a short memory – the time his business decisions cost Naspers millions upon millions of losses due to his dealings in the Far East etc….remember?
Just a note, research has always shown that the age group of people spending most of their time on the Internet are between 34 and 44. Usage of the internet is based on income and affordability and not necessarily by age. Blogs etc may be driven by young people between the ages of 25 and 34 who also assisted in driving e-commerce on the web – not necessarily the most active overall internet population. Users between these ages leave traces of their visits while older users prefer to stay anonymous. Saturation – meaning the European population between 34 and 54 years of age already reached more than 56% in 2006.
I cannot believe that Koos is stating assumptions as fact. He must fire his advisor who told him this bullshit! The most important thing is that ALL research studies on Internet usage have been based on assumptions – never the facts!
Max
Mr. Peter Pan Bekker
Well, the over 35’s shan’t be applying for voluntary retrenchment, as they don’t know anything about the internet, so wouldn’t have seen the email in the first place
I’m glad to see that the money Naspers spent on paying for Tim Spira’s MBA has paid off for them. Shame that they couldn’t have saved that money to avoid retrenchments. Tim Spira and Jason X were well under 35 when they were executive directors of Primedia’s internet play Metropolis (Sorry Metropolis*) – so that company must have been very successful!!!
In 1968, the movie “Wild in the Streets” (http://www.imdb.com/title/tt0063808/) hit the screens – flanked by the iconic musical ‘Hair’ and the very active flower power movement.
The movie suggested an outrageous scenario – young people take over the USA (and the world), lower the voting age under the slogan “fourteen or fight” and chant in the streets that “nothing can change the shape of things to come.” True to their flower-power credo, the world’s new owners embark on an orgy of Love, Sex, love and LSD.
The bubble blows when the movement’s leader, a precautious hoodlum named Max Jacob ‘Frost’ Flatow Jr. discovers that the 14 years olds – now eligible to be elected US senators – consider him to be too old
The problem with age, you see, is that is it progressive – everybody is aging all the time. Yesterday’s 28 year olds will be tomorrow’s octogenarians – this is guaranteed inevitability.
The most stupefying aspect of the story about the alleged Naspers <35 rule is that it bins issues like wisdom, experience and time-honed skills, networking capabilities and sheer professional know-how. It assumes a world run by (and for) the Jonas Brothers and Hannah Montana. Scary shite.
1. Mandy has an issue with Naspers / Media24 if you read some of her previous statements. This thing has been blown out of proportion for the sake of sensation.
2. Koos Bekker’s view on this matter has been twisted here in order to stir. Read here what Bekker actually says: http://grubstreet.co.za/2009/11/naspers-ceo-koos-bekker-speaks-to-grubstreet-about-its-digital-businesses/
Excerpt:
GILL MOODIE: If you play in the digital space, especially transnationally like Naspers does, developments happen so fast and all over the world. How do you as a 50-something keep track of these developments. It’s hard for someone like me in their 30s, for instance, to keep up as it seems like such a young person’s game.
KOOS BEKKER: You know, the hard truth is that people of your age make things happen on the internet and people of my age are roadkill. There’s nothing you can do about that. Inventions on the internet are made by young people working terribly long hours, trying many things and most things fail. Only occasionally do things succeed and then it takes off like a wildfire. It’s a wonderful, interesting world.
Now, I’m too old to invent anything. All I can try to do is when I see a good entrepreneur, give him encouragement, sit with him and try to advise him when he faces business problems or when he wants to list, have a look at the company and maybe persuade them to wait a bit.
What makes for a good internet company is a mix of talent – the code writing and the inventions of the young people. Sometimes we can give them advice on business structure or issues where your judgment comes in but you have to be modest about your contribution.
Sorry Fact Please — I was referrring to the INSIDERS who spoke to Mandy and not the published version.
May I quote, “Grubstreet spoke to the company’s CEO, Koos Bekker, about its digital businesses and the star performer Tencent, the Chinese internet services firm, that contributed R1.1-billion to the group’s R4.1-billion consolidated profit – a 49% increase from the same period in 2008.”
- More than 4000 million rands (R4 100 000 000,00) profit generated by the very same people he now wants to retrench! Is it moral?
Does Bekker believe there is room for more than one pay-TV channel in the South African market?
“Yes, easily. But the way to succeed is to be original and do something new. There are enormous possibilities. So far Telkom has wasted money on copycat ideas. One only requires massive capital for a new venture if you are duplicating an existing service and the consumer can’t see a difference. The intelligent way to compete is to ask what you can provide the consumer that others do not already offer.”
That is the principle that Naspers applied with its international internet offerings. “No player can fully satisfy all the consumer’s needs. When we launched our internet offerings, we did not try to compete with Yahoo, for instance – in each country we looked at what was not adequately provided.
“Real progress doesn’t come from boardrooms where money is thrown at PowerPoint presentations. One needs young people sitting around in a garage thinking originally. I fundamentally believe in young people; they experiment more. In our business most new things come from bright sparks under 35.”
■ This article first appeared in The Media magazine.
Facts please, so kicking people under their asses after they have given many years of service and hard work to a company, is NOT major? Being one of those people (and a very experienced journalist), Mandy’s reporting on this do not seem in the least sensational to me. This thing has not been blown out of proportion. Koos Bekker is destroying the lives of and insulting loyal and hardworking and experienced people for the sake of his own ego. The extract you published simply confirms his stupid and arrogant view about “older” people. And perhaps you should remind yourself that REAL PEOPLE, most with families,are involved here. I suggest you attend a sensitivity course.
Naspers dont know if they are coming or going, they launched many new products between 2006 to 2009 – hired many staff put huge investment in the products and then closed them without a single bit of research, retrenched all the staff, the investments in Far East loosing millions then retrenching staff last year and showing a major profit on their annual report? The the purchase of Prime Media and then retrenching staff, they are saying due to advertising income? they have just indicated that the afrikaans market is dead? they have just recently made Rapport a tabloid?, they have no strategies and dont know if they are coming or going. If they want to make the products one for 2012 so be it but they have lost all credibility. The Senior staff at these Afrikaans publications are dedicated and work all hours with no overtime- the were baby boomers who have given their all and loosing families and friend through these publications, the one person that comes to mind is the late Flip Meyer who said when he retired as editor he had no friends as he spent his life working!!!! , I doubt the under 35 years would do that- Generation X like to play on the Internet and mobile they dont want R6K -CTC they want the world and dont really want to work for it!Come on moms lets be honest hear??
“Facts please” must be in corp com seeing that he/she posted the same story on this discussion on bizcommunity too. His/her master’s voice is coming through in stereo.
Poor Koos Bekker
Pity Koos Bekker. The man gets no salary, no medical aid and no pension contributions from thankless Naspers.
But, wait! According to the Rich List of the Sunday Times our Koos is a cool R700 million strong!
And look at Naspers’ 2009 annual report:
The total of executive directors’ and key management emoluments amounted to R371,2 million (2008: R153,7 million).
While the managers were coining it, they were retrenching journalists.
It gets better. Also form the 2009 report: The executive directors of Naspers are allowed to participate in the Naspers Share Incentive Scheme. Details as at 31 March 2009 in respect of the executive director’s participation in scheme shares not yet released, are as follows:
Mr. J.P. Bekker’s share scheme entails some 11,4 million shares from his friendly board.
And look what he owns already (also from the 2009 report):
Mr J P Bekker has an indirect 25% interest in Wheatfields 221 (Proprietary) Limited, which controls 168 605 Naspers Beleggings Beperk ordinary shares, 16 860 500 Keeromstraat 30 Beleggings Beperk ordinary shares and 133 350 Naspers A shares.
There is some big boereverneukery going on at Naspers!
Bekker is a robber baron in the same mould as the big New York bankers.
As my noted journalist friend of many years standing commented:
“Jy sien, die top management fokkers keer net vir hulle eie inkomste. Let’s rape the income of our workers so we can keep on earning our bonuses and nice perks. (And screw the labour laws of this country…editors in chiefs are ABOVE the law, n’est ce pas!!)”
I say no more!
Max
Perhaps now would be a good time for senior editorial staff at Naspers to start reading Robert Kyosaki.
Oh for god’s sake, stop whining and grow up.
Each of Nasper’s publications are managed under a division – a so-called “sake-eenheid” – and if the division doesn’t perform financially, it needs to be pruned to keep going. Its not evil, its just business.
Do you see Naspers firing people in their PayTV divisions? No? Why? Because they are financially viable. Do you see Naspers firing Tencent employees left, right and centre? No? Why? Because they are financially viable.
Newspapers and magazines, on the other hand, aren’t any more. You’re working in a dying division – all they’re doing, is cutting costs to keep it alive. If they don’t, then EVERYONE loses their jobs.
Bitching about how Koos Bekker insulted your honour isn’t really a valid argument.
Mate, you are ignorant. Media24’s Afrikaans newspapers make a profit of millions. They made a profit in difficult circumstances last year and they will make a bigger profit this year.
However, the loss of 24.com, Media24’s internet division, in 2008 was R92 million.
Naspers’ profitable pay tv was built with newspaper money. Newspapers who sustained their losses for years.
Please do not comment on things you know nothing about. A, maybe you are from Media24’s clueless management. That would make sense.
Hi
I cant believe this, nuts! I will stop supporting this media house…
good luck
Tracey
” Despite stereotypes of entrepreneurs as fresh-faced youngsters, new research has found that older workers are more likely to innovate than their under-35 counterparts. ”
Interesting read: http://www.newsweek.com/2010/08/20/innovation-grows-among-older-workers.html
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