South Africa’s cinema business, Ster-Kinekor is set to lay off 236 employees and shut down at least nine cinemas due to fewer people going to cinemas, as per IOL report.
The company currently employs 728 people. This move comes as a response to declining cinema attendance and ongoing operational challenges. One can see how the landscape of streaming services like Showmax, Netflix, Amazon Prime Video, Disney+, and others has grown in the South African market, and this opportunity has a big impact on the cinema business.
The layoffs and cinema closures come just two years after Ster-Kinekor exited business rescue. Factors such as the challenging economic environment, load-shedding, and the impact of Hollywood strikes have all contributed to the decline in attendance.
Ster-Kinekor’s decision to restructure and trim its workforce affects several departments, including the CEO’s office, marketing, sales, human capital, information technology, business operations, content, finance, head office, regional operations, and cinemas.
The company’s decision to lay off employees and close cinemas reflects the ongoing transformation of the entertainment industry and the challenges faced by traditional movie theatres in adapting to changing consumer preferences.
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