Standard Group, which owns Standard newspaper and KTN, plans to lay off hundreds of employees as part of restructuring to keep it in business. The company, once a force to reckon with in media, has over the past few years been facing financial difficulties that have pushed it deep into the red.
The company’s board has issued a redundancy notice in what is understood to be a massive layoff of journalists and other operational staff. The board says it will send away 300 Standard Group employees, a painful cut that is hoped to help the company bounce back from its perennial losses, after slicing off nearly 40% of its workers.
“As part of our compliance procedure, The Standard Group PLC has issued a notice of intention to declare redundancy to the Ministry of Labour and Social Protection as stipulated in section 40 (1) of the Employment Act, 2007,” the board said in an internal memo sent out to staff on 30th July.
The management attributes the move to the difficult operating environment and its long-drawn effect on revenue generation. “This situation has been witnessed on the back of shifting trends in media consumption, occasioned by technological changes in the digital media landscape and emerging consumer preferences which have necessitated a rethink of our business model,” it says.
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The redundancy notice takes effect upon expiry of the one-month notice issued on 31st July 2024. The move comes barely two weeks after Standard Group employees staged a strike, protesting mounting salary arrears.
On 17th July, journalists were joined by other staff to paralyse operations at Standard Group headquarters on Mombasa Road. They disrupted a live bulletin forcing the news anchor to take a short break at around 1:07pm after presenting only one news item.
Earlier on 4th July, radio employees from Radio Maisha, Spice FM, Berur FM, and Vybez Radio downed their tools to demand payment of salary arrears dating back to June 2023. All radio stations were left playing music with no presenter on air as they demanded the management honour their contractual agreements.
Standard Group has recorded losses for the past few years but remains confident that the reorganisation of the business through restructuring will place it in good stead by adopting a leaner, more efficient structure for better performance and growth.
“Coupled with the new leadership that is coming on board, we consider the reorganisation of our business as a necessary step intended to ensure business stability and continuity in the coming months as the Group strives to sustain and enhance the quality of journalism it offers. Additionally, we shall rationalise our products to ensure that they remain aligned with the media landscape,” it says.
Standard Group announced Ms Marion Gathoga-Mwangi as the new Chief Executive Officer (CEO) on 4th July, with her appointment taking effect from 15th July 15. Ms Mwangi took over from Mr Joe Munene who has held the position on interim since 6th July, 2023 after Orlando Lyomu left.
While Ms Gathoga-Mwangi is an accomplished Senior Executive with over 26 years of local and international experience in Commercial, Operations Excellence and General Management in multiple sectors, she is facing a baptism of f**e with her major assignment being the sacking of employees.
Standard Group management says the affected employees will be compensated accordingly. They will be paid for days worked until the date of exit, severance of pay of 15 days (or as indicated in the CBA for employees who are members of a union) for every completed year of service.
Also, there will be notice of pay as per the contract of employment, payment of leave days accrued and not taken at the time of exit, and pension dues or gratuity in accordance with the Scheme Rules Contract of employment respectively.
