Iflix, the multi-territory streaming agency primarily based in Malaysia, has confirmed a big wave of job cuts. The corporate is beneath strain throughout the coronavirus disaster and forward of debt compensation deadlines.
The corporate is believed to be shedding 65 folks throughout its varied places.
“The trade just isn’t immune to those unprecedented circumstances. Our choice to cut back the corporate’s headcount has come after cautious consideration and along with different cost-cutting measures, to allow the corporate to endure this indefinite and unsure interval,” mentioned CEO Marc Barnett in an announcement.
“We stay targeted on driving the enterprise by means of to breakeven in 2021 and these steps are a part of guaranteeing we stay on that path and might navigate the present challenges. We’re naturally doing all we are able to to help the workers affected each professionally and personally.”
The transfer comes lower than two weeks after the announcement by Singtel, that it’s placing rival South East Asian streaming platform Hooq into liquidation. Hooq is co-owned with WarnerMedia and Sony.
Hooq was obtainable in 5 territories: Singapore, The Philippines, Indonesia, Thailand and India. Iflix is on the market in 13 territories in South East Asia (together with Malaysia, Indonesia, The Philippines and Thailand) and the Center East.
Earlier final week, Iflix referred to as on its current shareholders to offer it with extra capital, and mentioned that founding shareholder Catcha Group can be placing up a minimal of $2 million.
In its letter to shareholders, Iflix acknowledged that present circumstances imply that its deliberate IPO on the Australian Securities Change is unlikely to go forward by mid-year.
Which will in flip set off an acceleration of its debt repayments. In keeping with Dealstreet Asia, citing paperwork filed with the Australian Securities and Investments Fee in September 2019, Iflix may be pressured to redeem simply over $47.5 million of convertible loans if it isn’t listed by July 31, 2020.
Iflix is believed to have raised extra money than Hooq, probably $300 million since its being based in 2014. Its backers embrace Constancy Worldwide, MNC Group, Yoshimoto Kogyo, JTBC, Hearst Communications, EDBI, Liberty World, Zain, Sky and Evolution Media Capital.
The corporate says that it’s buying and selling effectively. In his letter to shareholders, Barnett reported that month-to-month lively customers are at a file excessive of 21 million, and up 42% because the begin of the 12 months. He mentioned that Iflix had hit its income goal for the primary three months of 2020.