MEDIA

Nation Media Group Fires Staff in Uganda Over Digital Shift, Covid-19

Share
NMG headquarters in Nairobi. The group has axed several workers in Uganda effective Wednesday, March 31, 2021
NMG headquarters in Nairobi. The group has axed several workers in Uganda effective Wednesday, March 31, 2021
Share

Nation Media Group (NMG) has notified staff in Uganda of imminent lay-offs – citing the effects of the Covid-19 pandemic and restructuring informed by the company’s enhanced shift to digital.

The company operates leading media brands in the country – including NTV Uganda, The East African and the Daily Monitor. A letter from Managing Director Tony Glencross stated that cost-saving interventions by NMGU had not been enough to sustain the business while protecting jobs.

“Several companies have either substantially scaled down operations, re-engineered themselves or shut down completely due to the drastic decline in revenues. The media sector has not been spared by the pandemic and media houses including NMGU have been severely impacted,” the letter seen by Business Today read in part.

He further highlighted the group-wide strategic digital shift – meant to increase consumer revenue while reducing reliance on traditional advertising revenue.

Over the past year, Nation has stepped up its digital push, most notably rebranding its main digital platform to Nation.Africa and introducing a paywall.

NMG Uganda Country Manager Tony Glencross. He described the decision to send staff home as unfortunate.

READ ALSO>>>>>The Grim Reality of Covid-19 in Media Industry

“On this journey, we intend to radically change our business model for all our media platforms from traditional advertising to content-driven revenue with the objective of establishing leadership in the mobile/digital landscape in Uganda while exploring new revenue streams in the experiential and technology space.

“This will require re-tooling and resourcing within the NMGU operation with relevant skill sets critical for success in the new business environment. Regrettably, it will also result in a reduction of our workforce effective Wednesday, March 31, 2021,” Glencross noted in his letter to NTVU employees.

NTVU promised to make the transition as smooth as possible for affected employees while adhering to Uganda labour laws.

They were offered special counselling support and medical insurance cover until June 30, 2021.

The media industry in East Africa has been hard hit by the pandemic. In Kenya, hundreds of workers across media houses were sent home in 2020 as firms adopted cost-cutting measures.

Mediamax, Standard Group, Royal Media Services and NMG – all market-leading media operations – axed workers as advertising revenues plummeted.

READ>>>>>Auctioneers’ Desperate Search for Buyers in Newspapers Reveals Kenyans’ Struggles

 

Written by
MARTIN SIELE -

Martin K.N Siele is the Content Lead at Business Today. He is also a Quartz contributor and a 2021 Baraza Media Lab-Fringe Graph Data Storytelling Fellow. Passionate about digital media, sports and entertainment, Siele also founded Loud.co.ke

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
Communications Authority Asks to Review Kenya’s Telecommunications Market Structure
FEATURED STORY

Communications Authority Move on Termination Rates. A boon to mobile phone users

Communications Authority of Kenya (CA) has published a new four-year glide path...

Standard Chartered Bank Kenya
BUSINESSFEATURED STORYNEWS

Standard Chartered Bank Kenya in C-Suite Changes After Profit Drop Alert

Standard Chartered Bank Kenya(SCBK) Limited, the first lender in Kenya to deploy...

CBK headquarters in Nairobi
BUSINESSECONOMYFEATURED STORYNEWS

Central Bank of Kenya Opens KSh15Bn Bond Switch Auction Offer

Central Bank of Kenya (CBK) has opened a KSh 15 billion bond...

From left, Invest Kenya CEO John Mwendwa, PS Investments, Abubakar Hassan Abubakar, Delmonte MD, Wayne Cook and IQF Manager, Japheth Maingi look on as Annastacia Wavinya explain the pineapple canning process at the Delmonte Canning line
BUSINESSECONOMYFEATURED STORYNEWSTECHNOLOGY

Del Monte Kenya Boosts Export Capacity with $4m Fruit Processor

Del Monte Kenya Limited, a leading fruits and vegetables processor, has set...