The Standard Group has announced retrenchment plans against its staffers, as the company operates in the red with dwindling fortunes.
In a memo dated September 30, 2022, the Group CEO Orlando Lyomu said that the company had been recording reduced fortunes due to the disruptions caused by the Covid-19 pandemic, as well as shifting media trends.
“I wish to notify all members of Staff of the Company’s intention to declare redundancies in various departments. This has been necessitated by the disruption of our business in 2020 and 2021 as a result of the Covid-19 pandemic which continues to negatively impact the Group’s revenues, restructuring of the business to adopt a leaner, more efficient structure and shifting trends in media consumption occasioned by technological changes in the digital environment,” Lyomu said.
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According to Lyomu, the Company will ensure the process and the selection criteria is fair and in compliance with the provisions of the Employment Act
Employees who will be declared redundant will be paid for days worked until the day of exit, severance pay of 15 days (or as indicated in the CBA for employees who are members of a union) for every completed year of service and notice pay as per the contract of employment.
Retrenched employees will also be handed payment of leave days accrued and not taken at the time of exit, pension dues or gratuity in accordance with the scheme rules or contract of employment.
“The company is therefore giving one months’ notice of the company’s intention to declare redundancy with effect from the date hereof. The redundancy is expected to affect employees across all departments and will be undertaken in phases. The affected employees will be informed in writing. Private counselling sessions will be available for the affected employees in addition to free financial management training within the month,” Lyomu said.
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Standard Group Plc reduced its loss before tax to Ksh22 million for the year ended December 31, 2021, compared to a loss before tax of Ksh434.4 million over a similar period in 2020, an improvement of 95%.
According to the media house’s audited accounts revenue increased to Ksh3.1 billion in 2021 from Ksh2.9 billion in 2020 while total operation costs declined from Ksh3.3 billion in 2020 to Ksh3.1 billion in 2021.
Cost rationalization continued to be integral to the company’s operations which saw the Group’s total operating costs reduce by 5% from 2020.
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