South Africa's leading 24-hour news channel, eNCA, plans to reduce its workforce by over half amid declining television viewership and revenue challenges. The move follows broader industry trends of job losses as media companies shift to digital-first operations. Financial disclosures reveal significant pay disparities, adding to concerns among employees.
South Africa's media industry faces another significant setback as eNCA, a prominent 24-hour television news station operated by JSE-listed eMedia, announces plans to reduces its workforce by approximately 171 out of 309 employees by the end of 2026.
This move follows a trend of widespread job cuts across the country's media sector, exacerbated by declining advertising revenue and the shift towards digital news consumption. The proposed reductions will primarily affect the news, technical, and broadcasting departments as eNCA transitions from a traditional newsroom structure to a smaller, digital-first operation. The company cited changing audience habits and shrinking television viewership as key drivers behind the restructuring.
Employees were informed to attend a meeting on Wednesday to commence section 189 consultation, a legal process required before implementing retrenchments. The media industry in South Africa has been under severe strain for over a decade, mirroring global trends where traditional media outlets struggle to adapt to digital transformation. Estimates suggest the country has lost approximately 70% of its news media workforce since 2010, with major publishers like Media24, Daily Maverick, and Arena Holdings engaging in multiple rounds of retrenchments.
Media24, owned by Naspers, underwent a significant restructuring in 2024, closing print editions of five newspapers and moving three to digital-only formats. Industry insiders point to sustained declines in advertising revenue as the primary catalyst for these changes, with traditional television and print media facing fierce competition from digital platforms.
While eMedia claims some success in outperforming the television advertising market, its overall revenue fell by 28% to $102 million in the latest financial year, with losses deepening from $10 million to $16 million before interest and tax. Adding to employee concerns, eMedia's financial disclosures under new Companies Act regulations highlight stark pay disparities.
CEO Khalik Sherrif earned R19 million in the latest financial year, including a R10.3 million bonus, while the lowest-paid employee received just R98,000. eNCA argues that its outdated newsroom model can no longer sustain the current workforce and aims to streamline operations by integrating linear, online, and digital platforms under a unified newsroom. The proposed changes reflect a broader industry shift towards leaner, more agile news organizations focused on digital engagement.
However, for the affected employees, the overhaul underscores the growing instability in an industry struggling to balance financial viability with the evolving demands of modern audiences
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