MultiChoice jobs bloodbath expected
MultiChoice is heading for a major staff shake-up after Groupe Canal+’s takeover, with a three-year retrenchment moratorium likely delaying deeper job cuts rather than preventing them.
The French media giant has already begun reducing head-office staff through voluntary severance packages, with the full impact of Showmax’s shutdown yet to be felt.
When Canal+ took over MultiChoice, one of its promises to shareholders was that there would be efficiency benefits. Showmax’s shuttering has left it with many more employees than it needs.
In its most recent financial results, Canal+ promised to unlock over €400 million (R7.7 billion) in annual cost savings by 2030.
That is two years after the moratorium on retrenchments imposed by South African competition authorities is lifted.
The Competition Commission and Tribunal blocked Canal+ and MultiChoice from retrenching local employees for 3 years from the merger implementation date.
The Competition Tribunal said the parties “will not retrench any employees in South Africa as a result of the merger” for the duration of the moratorium.
They also undertook that there would be “no adverse effects on the terms and conditions of employment” for affected employees in South Africa.
The Competition Commission has since clarified that voluntary severance packages are not subject to the moratorium, giving the group room to reduce staff within the three-year prohibition.
Groupe Canal+ took control of MultiChoice in September 2025 following an extensive mandatory buyout process. Therefore, the moratorium on retrenchments is set to expire in 2028.
During its most recent financial results presentation, Canal+ confirmed that its turnaround plan for MultiChoice included restructuring both MultiChoice and its wholly owned subsidiary, Irdeto.
The restructuring plan included voluntary severance packages and a push for improved efficiency through best practices and a standardised operating model across its markets.
Canal+ Africa CEO David Mignot previously said the company would introduce voluntary severance packages while reducing staff at headquarters and reinforcing its field workforce.
Canal+ has also said it will hire 1,000 more sales staff in South Africa and other territories as part of MultiChoice’s turnaround plan.
The group plans to increase points of sale, grow its installer base, and invest more money in marketing and branding across its African operations.
Intervention needed to stop the bleeding
Canal+’s 2025 results showed that MultiChoice revenue dropped by €142 million, or R2.69 billion, while the broadcaster lost roughly half a million subscribers.
Aside from restructuring MultiChoice, Canal+ said its turnaround plan included three other strategic pillars: content, simplified commercial propositions, and distribution growth.
It said the plan would require an additional €100 million (R1.9 billion) investment to accelerate MultiChoice’s turnaround.
MultiChoice’s situation was not helped by Showmax, which Canal+ labelled an “expensive failure”. It shut the South African streaming platform down on 30 April 2026.
MultiChoice attributed roughly R8.7 billion in trading losses over its last three financial years to the relaunch of Showmax, content acquisition, and platform licensing fees.
“The decision to phase out Showmax reflects our focus on building a sustainable, competitive business for the long term in an increasingly demanding global streaming environment,” MultiChoice said at the time.
“The decision to discontinue Showmax services will not involve any retrenchments. MultiChoice Group will be engaging and supporting employees through various transition options.”
Canal+ drew the attention of Parliament following the announcement that it would shutter Showmax, with film industry stakeholders warning that it would cost jobs in the local supply chain.
News that new local content production and procurement decisions had stalled following Canal+’s takeover raised further concerns.
The conditions of MultiChoice and Canal+’s merger included commitments to supplier development, local audiovisual content spending, and the promotion of South African content in new markets.
The Competition Commission and Icasa briefed Parliament’s communications portfolio committee in March after MPs questioned their approvals of the Canal+ transaction.
They explained that the transaction was approved with conditions. The Competition Commission said it would investigate whether Canal+ was in breach of the takeover conditions.
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