Standard Group PLC, one of Kenya’s leading media companies, announced plans to lay off more than 300 employees as part of a significant restructuring effort. The company cited challenging market conditions and changing media consumption habits as key drivers behind the decision.
In a statement released on Tuesday, Standard Group said it had issued a notice of intention to declare redundancy, effective from July 31, 2024. The move comes as the company grapples with revenue pressures amid a rapidly evolving digital media landscape.
“We remain confident that the reorganization of the business through restructuring will place us in good stead by adopting a leaner, more efficient structure for better performance and growth,” the company stated.
The redundancies, which will impact staff across various departments, are set to take effect after a one-month notice period. Standard Group emphasized that the restructuring is crucial for ensuring business stability and continuity in the coming months.
Sources close to the matter, speaking on condition of anonymity, revealed that some employees have gone up to eight months without pay. This financial strain reportedly led some staff members to abscond from their duties in protest.
The company plans to compensate affected employees with severance pay, notice pay, and other benefits in accordance with their contracts and collective bargaining agreements. Unionized employees will receive 15 days of pay for every completed year of service, while non-unionized staff will be compensated based on their individual contracts.
Standard Group’s decision highlights the challenges faced by traditional media companies in adapting to digital transformation. The company stated that “shifting trends in media consumption, occasioned by technological changes in the digital media landscape and emerging consumer preferences” have necessitated a rethink of its business model.
As part of its strategy to navigate these challenges, Standard Group announced plans to rationalize its product offerings to better align with the current media landscape. The company also mentioned that new leadership will be coming on board, suggesting further changes in its management structure.
