The Standard Group PLC has announced plans to lay off more than 300 employees, citing a difficult operating environment.
In a notice to all its employees on Tuesday, July 30, the media house declared its intention to declare the employees redundant under Section 40 (1) of the Employment Act, 2007.
The media company said the restructuring will better position it for efficient performance and growth as a result of changing trends in media consumption.
“In reaching this decision, we took into consideration, 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,” read part of the notice by Standard Group board.
It added, "Coupled with the new leadership that is coming on board, we consider the reorganization 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.”
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The board further stated that it would notify all the affected employees of the media house in due time through writing.
“The redundancy notice takes effect upon expiry of the one-month notice issued on July 31, 2024, and is expected to affect more than 300 employees across various departments. All the affected employees will be duly informed in writing,” the board added.
However, the affected employees will receive payment for the days worked until their date of exit and a 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.
They will also be entitled to notice of pay as per the contract of employment, payment for any accrued leave days not taken at the time of exit, and pension dues or gratuity in accordance with the scheme rules of their contract of employment.
This comes after the Kenya Union of Journalists (KUJ) gave the media house a fourteen-day ultimatum to come up with a clear payment plan for the salaries owed to its journalists.
In a press statement on Sunday, June 30, KUJ Secretary General Eric Oduor intimated that some staff at the media house had not been paid for seven months.
