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Standard Group Announces Redundancy Plan Amidst Challenging Media Landscape

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Nairobi, July 30th, 2024 — The Standard Group PLC has announced its intention to declare redundancy as a strategic response to the ongoing challenges in the media industry. This move, in compliance with section 40 (1) of the Employment Act, 2007, is driven by the difficult operating environment that has significantly impacted revenue generation. The company has noted a long-drawn effect on its finances, exacerbated by shifting trends in media consumption due to technological advancements and changing consumer preferences.

The Standard Group acknowledges that these industry changes necessitate a reevaluation of its business model. In a statement, the company expressed confidence that restructuring would lead to a more efficient and effective organizational structure. The reorganization is aimed at ensuring better performance and sustainable growth, alongside the new leadership set to join the company.

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“We believe that reorganizing our business through restructuring will position us well for the future. A leaner, more efficient structure is essential for maintaining stability and enhancing the quality of journalism we provide. This is crucial for our long-term sustainability,” the statement read.

As part of the restructuring, the company will also rationalize its product offerings to ensure alignment with the evolving media landscape. This approach is intended to keep the company competitive and relevant in an industry that is rapidly transforming.

The Standard Group has assured that all affected employees will receive fair compensation. The redundancy package includes:

  • Payment for days worked until the date of exit.
  • Severance pay of 15 days (or as specified in the Collective Bargaining Agreement for union members) for every completed year of service.
  • Notice pay as per the contract of employment.
  • Payment for accrued and untaken leave days.
  • Pension dues or gratuity in accordance with the Scheme Rules and the Contract of Employment.
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The redundancy notice takes effect after the one-month notice period, expiring on July 31st, 2024. This restructuring is expected to impact over 300 employees across various departments. The company has committed to informing all affected employees in writing.

The decision comes at a time when many media organizations are grappling with the dual challenges of declining traditional media revenues and the need to invest in digital transformation. The Standard Group’s move reflects a broader trend in the industry where companies are increasingly looking to adapt their business models to survive and thrive in a digital-first environment.

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This redundancy plan underscores the significant shifts taking place in the media landscape and highlights the need for traditional media houses to innovate and adapt to remain relevant. As The Standard Group navigates these changes, it remains focused on delivering high-quality journalism while ensuring business continuity and stability.


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