It is understood that a conglomerate which has been operating multiple media platforms with nationwide reach is looking at reducing its number of staff to two-third of its current size.

Sources also told FMT that senior managers have been called for a meeting today to announce retrenchment plans.

“The details of the exercise will be laid out and could affect more than 1,300 employees,” said one source with knowledge of the matter.

It is also learnt that at least 500 editorial staff will be affected by the decision.

This latest move in a spate of company shutdowns and resizing exercises is seen as a signal that the media industry is far from recovery.

On Oct 9, Utusan Malaysia and Kosmo! announced their final appearance at news stands nationwide after publisher Utusan Melayu Bhd went into liquidation.

It was reported that the company would need RM400 million to settle its debts and liabilities, and to pay compensation and outstanding salaries owed to more than 1,500 former employees.

It was also reported that Berjaya Media, which publishes theSun newspaper, will be delisted from Bursa Malaysia next week. On Wednesday, the company’s shares plunged 58.54% (12 sen), its sharpest fall in history.