Utusan Malaysia and Kosmo! shut down TODAY?! More than 800 employees out of a job!

It is speculated that Utusan Malaysia and Kosmo! are shutting down their operations today and all of their workers are going to be laid off this evening.

According to a worker at Utusan, their headquarters at Jalan Chan Sow Lin was closed yesterday with workers cleaning out their belongings, following an unofficial announcement by their management.

They [the workers] were notified to come to the office in the afternoon to be briefed on the company’s latest development.

“Employees are required to vacate the office in 48 hours. There will be an official announcement tomorrow (Wednesday).”

“They[the company] will send us letters but so far, it is unclear if they will pay us back or what the compensation will be.” as told by the worker to Malaysiakini yesterday.

The development came after Utusan Melayu (Malaysia) Bhd announced that they will transfer 70% of its wholly-owned subsidiary, Dilof Sdn Bhd to Aurora Mulia Sdn Bhd - owned by businessman Syed Mokhtar Al-Bukhary.

Over the course of the year, Aurora Mulia has been expanding its holdings in Media Prima Bhd. and currently holds 31.22% of the shares in Media Prima.

Another worker (who declined to be named), said there was still hope for workers as there was speculation that the company would make a fresh start and take them back.

Recently, there has been a message circulating on Whatsapp titled “Recent Speculation” that states Utusan Malaysia would settle the debt of RM230 million, and most workers would be terminated, with only 60 staffs to be reinstated.

According to the order, it is still unclear whether the newspaper will continue publishing during the transitional period.

Currently, Utusan Melayu (Malaysia) has about 800 employees.