- The Standard Group PLC plans to declare redundancy for 300 employees due to a challenging operating environment
- Job security concerns in the media industry have been growing due to declining advertising revenues and increased competition from digital platforms
- New CEO, Marion Gathoga-Mwangi, expected to address the poor performance and turn around the firm
The Standard Group PLC has issued a notice of intention to declare redundancy, affecting over 300 employees across various departments.
The media giant attributed this decision to a challenging operating environment characterised by shifting trends in media consumption and the impact of technological advancements on the digital media landscape.
In a statement issued on Wednesday, the company explained that the decision was reached after careful consideration of the difficult operating environment and its effect on revenue generation.
The notice of intention to declare redundancy, as stipulated in Section 40(1) of the Employment Act, 2007, will take effect upon expiry of a one-month notice issued on July 31, 2024.
The Standard Group has pledged to compensate affected employees with payment for days worked, severance pay, notice pay, accrued leave pay, and pension dues or gratuity.
The company expressed confidence that the restructuring will lead to a leaner and more efficient organisation, enabling it to better navigate the evolving media landscape and ensure business continuity.
The redundancy exercise comes amid growing concerns about job security in the media industry, which has been grappling with declining advertising revenues and increased competition from digital platforms.
On July 4, radio presenters at Standard Media Group downed their tools in protest against delayed salaries.
The presenters, who host some of the most popular shows on stations under the media conglomerate, walked out of their studios on Tuesday, leaving listeners listening to music.
The walkout came after months of growing frustration among the staff over late payments, with some employees claiming they had not been paid for several months.
Staff at the media house have been vocal about their plight, using organisations such as Kenya Union of Journalists and Media Council of Kenya to air their grievances and demand immediate action from the management.
This comes after the media house reported a Sh1.26 billion loss for the year ended December 2023.
The group's total revenue fell to Sh2.38 billion from Sh2.53 billion in 2022.
This decline was primarily attributed to reduced advertising spending by clients due to the challenging economic environment.
Operating costs increased to Sh3.09 billion from Sh2.95 billion in the previous year. This rise was driven by higher input costs and inflationary pressures, which impacted the company's profitability.
The go-slow and poor performance are some of the things that the new CEO Marion Gathoga-Mwangi is expected to address and turn around the firm.
Gathoga-Mwangi, who began her tenure on July 15 has a wealth of experience to the role, with a 26-year career spanning both local and international arenas.