Struggling media conglomerate Standard Group PLC, the owner of KTN News and Radio Maisha, has announced a second round of staff layoffs in 2023, further exacerbating the challenges faced by the beleaguered media company. This move comes just months after a previous round of layoffs saw numerous journalists lose their jobs.
In a memo dated Friday, September 1, Acting Chief Executive Officer Joe Munene informed staff members of the company's intention to declare redundancies affecting various departments within the organization.
The memo cited several factors for the latest round of layoffs, including the prevailing economic downturn, the rising cost of living, and intensifying competition from digital media platforms. Munene explained that the restructuring was deemed necessary to create a leaner and more efficient organizational structure capable of adapting to shifting trends in media consumption driven by technological changes in the digital landscape.
Importantly, Munene reassured employees that the redundancy process and selection criteria would be conducted fairly and in compliance with the provisions of the Employment Act, 2007, as well as the Collective Bargain Agreement (CBA) for union employees.
Affected employees will be informed in writing, and the company has pledged to provide compensation for days worked up until the date of their exit, along with notice pay as per their employment contracts and payment of accrued but unused leave days. Pension dues and gratuity will also be disbursed in accordance with the applicable scheme.
To support affected staff during this challenging period, Standard Group PLC will offer private counseling and provide a free financial management session. Munene encouraged employees seeking further information to contact the Human Resources Manager.
This latest development underscores the ongoing financial difficulties faced by media companies in Kenya and the broader media industry, which has been grappling with shifting consumer preferences, economic challenges, and increased competition from digital media platforms.