updated version In a shocking turn of events, The Sun today retrenched some 40 staff, including scores of journalists, with immediate effect and sources told malaysiakini more will be axed in the coming days.

Termination letters were distributed at about 5pm and many of those affected were said to have shed tears as they cleared their desks, while one journalist who was spared, developed chest pains after discovering the fate of his colleagues.

Journalist Joseph Massilamany, 44, is currently undergoing treatment at the Assunta hospital in Petaling Jaya.

The retrenched journalists and a number of sympathisers carried out a candle-light vigil at about 10pm outside the daily's office in Petaling Jaya to protest the management's decision.

Second wave

According to a source, the retrenchment is targetted at those who were involved in the pickets and the daily's National Union of Journalists branch members.

"A second wave of retrenchments is expected on Monday and it is believed that all state bureaus, except for Penang, will be shut down as well," said the source.

The source added some 30 journalists had received the termination letters so far but the actual number could not be ascertained as some who were on leave had their letters hand delivered to their homes.

The newspaper has an editorial staff of about 100, and another 50 journalists stationed in various bureaus around the country

The letter dated Jan 11 and signed by the company's director Frankie Tay Thiam Siew, cited "economic difficulties" and the decision to "scale down manpower in the central region" as the reasons for the retrenchment.

The letter stated that all retrenched staff are entitled for salary up to their last working day, fixed allowances calculated up to the last working day, a one-month salary for the absence of a proper notice, and retrenchment benefits under the Collective Agreement.

On the short notice of the retrenchment, the management explained that it was to enable the affected staff to seek alternative employment without delay.

Surprise decision

The unprecedented decision caught the journalists by surprise as they were waiting for the management's reply on the delay of a one-month bonus due last month and another month's in three instalments commencing February.

On Monday, the daily's NUJ branch had agreed to put their pickets on hold until next Tuesday after a meeting with Tay.

Journalist S Kavitha said she received the letter of retrenchment from her superior at the business desk when she returned to the office from an assignment.

"It was definitely not done in a 'first-in-last-out' manner. I was working there longer than some who remain," said Kavitha.

It is learnt that the first person to be issued the letter was the daily's NUJ branch president K Kannan. The paper's Klang news bureau, where Kannan had worked, was also shut down effective today.

Other NUJ branch leaders axed were secretary P Vijian, assistant secretary Claudia Theophilus, and committee members V Gayathry and R Ravichandran.

Apart from journalists, others affected, include those on probation, photographers, graphic artists and business personnel.

Controversial story

The Sun staff have been picketing for the reinstatement of two suspended journalists and against the delay in the payment of their bonuses.

The suspensions followed a controversial Christmas day front-page report of a plot to kill the country's top two leaders.

The report was picked up by news agencies and circulated worldwide. This irked Prime Minister Dr Mahathir Mohamad who criticised the daily for "sensationalist reporting".

However, managing editor Chong Cheng Hai, chief news editor Robert Ho, journalist R Manirajan and photographer Anita Md Nasir who were suspended over the Dec 25 report were not issued retrenchment notices today.

The Sun, incorporated in 1991 and launched in 1994, has a circulation of about 82,000.

The daily, which is 19.5 percent owned by business tycoon Vincent Tan's Berjaya Group, has suffered an estimated loss of RM200 million since its inception.

Last year, The Sun was bought over by business weekly The Edge's owner Tong Kooi Ong, but the deal fell through. It is believed that the deal failed to receive the green light from government authorities.

Tan is said to have been desperately looking for partners willing to buy substantial stakes in the daily.

Among the names that have cropped up are billionaire and satellite television network Astro's Ananda Krishnan and Berita Publishing chairperson Abdul Kadir Jasin.