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Independent Newspapers - home to titles such as the Cape Argus and Cape Times, among others - announced it would soon embark on a restructuring process across several of its business units.
This, as part of its ongoing efforts to address the challenges within the business and broader media environment.
In a media statement on Friday, the company said the decision was made after a thorough evaluation, adding that it was determined that further restructuring was critical to its long-term sustainability.
It said Independent Newspapers' reliance on shrinking advertising and circulation revenue, coupled with its lack of access to loans or banking facilities, placed the business in a precarious financial position.
"The risk associated with losing banking support, particularly given the company's cash-based operations, poses an existential threat," the statement read.
"The restructuring is therefore essential to securing the company's future and mitigating these banking risks."
In addition to banking concerns, rising operational costs - especially those related to paper and print, which now account for 60% of the company's expenses - and shifting audience preferences toward digital platforms, have further underscored the need for restructuring.
Executive chairman of Independent Media, Dr Iqbal Survé, echoed this sentiment, stating that the cost of running print titles has become unsustainable for Independent Media, Sekunjalo, and the Survé family, who have personally bolstered the publishing company over the last few years.
"Print media has been an iconic pillar of our company for decades, but the current business model is no longer sustainable in a world where digital platforms offer far greater reach and engagement opportunities," he stated.
He acknowledged that while every effort would be made to mitigate the effects of the restructuring, not all employees would transition into the expanding digital division.
"We will assist with transitions wherever possible," he assured.
He said Independent Newspapers was "committed to ensuring that the restructuring process is managed transparently and fairly," adding that consultations woukd take place in accordance with the Labour Relations Act.
No final decisions had been made. at this stage.
Media24, one of South Africa's largest media companies, also recently announced the closure of four of its print titles, citing similar challenges.
