Phoenix cutback prompts Star to chop HK payroll

HONG KONG: Satellite broadcaster Star has laid off 50 people after News Corporation's joint-venture Phoenix Television saw revenue for the nine months to March slump nine per cent to HK$493.6 million (US$63.2 million).

The cutbacks were made after Phoenix's operating costs rose by almost 23 per cent to $615 million. It is understood that Phoenix is planning to set up its own team to handle its production in place of staff seconded from Star. Phoenix is also considering rehiring laid-off Star executives as well as other outsourcing arrangements to rein in costs.

It is also looking at broadcasting some programmes on cable and pay-TV networks.