Standard Group PLC, one of Kenya’s leading media conglomerates, has announced its intention to declare redundancy for over 300 employees.
This decision comes in response to a challenging operating environment marked by dwindling advertising revenues and the growing dominance of digital media platforms.
In a statement released on Wednesday, the company cited the impact of shifting media consumption trends and technological advancements as key factors influencing the redundancy decision.
The notice, in compliance with Section 40(1) of the Employment Act, 2007, will take effect following a one-month notice period starting July 31, 2024.
The redundancy will affect various departments across the organization.
Standard Group has committed to compensating the affected employees with payments for days worked, severance pay, notice pay, accrued leave pay, and pension dues or gratuity.
This move is part of the company’s broader effort to restructure and streamline operations in the hope of better navigating the evolving media landscape.
The announcement follows a series of challenges faced by the media house, including a reported loss of Sh1.26 billion for the year ended December 2023.
The company’s revenue fell to Sh2.38 billion from Sh2.53 billion in 2022, largely due to decreased advertising spending and increased operating costs driven by inflation.
The financial difficulties were exacerbated by employee unrest earlier in July, when radio presenters at Standard Media Group staged a walkout over delayed salaries.
The strike, which left listeners without programming, highlighted ongoing frustrations among staff over late payments and poor working conditions.
These issues were raised with organizations such as the Kenya Union of Journalists and the Media Council of Kenya.
