Standard Group Plc has announced plans to lay off over 300 employees across various departments.
The Nairobi Securities Exchange (NSE) listed media house cited a challenging operating environment characterized by shifting trends in media consumption and the impact of technological advancements on the digital media landscape as the primary reasons for the job cuts.
In a statement issued on Tuesday, July 30, the company formally notified the Ministry of Labour and Social Protection of its intention to declare redundancy, as required by Section 40(1) of the Employment Act, 2007.
Standard Group emphasized that: “In reaching this decision, we took into consideration, the difficult operating environment and its long-drawn effect on revenue generation.”
The media house intends to restructure its operations to create a leaner, more efficient organization capable of adapting to the evolving media landscape. It also highlighted the appointment of new leadership as a catalyst for this transformation.
“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,” it said.
Affected employees will receive a severance package including payment for days worked, 15 days’ pay for each completed year of service (or as stipulated in the collective bargaining agreement), notice pay, accrued leave pay, and pension dues or gratuity.
The redundancy process will commence on August 31, 2024, following a one-month notice period.
Press Release: Notice of Intention to Declare Redundancy. pic.twitter.com/0JnxLMiW1o
— The Standard Group PLC (@StandardGroupLc) July 31, 2024
Standard Group Plans Sh1.5 Billion Capital Raise Through Rights Issue
In June, the group said it was planning a KES1.5 billion capital raise through a rights issue. The company’s board of directors authorised the rights issue at a meeting on June 28.
The proceeds will be used to “restructure its balance sheet to be able to take advantage of emerging future opportunities for the business in a digital era,” according to a statement signed by company secretary Victoria Cherotich.
Standard Group includes The Standard and Nairobian newspapers, Radio Maisha, KTN Home & News, and the Standard Media website.
The announcement comes amid ongoing labour unrest at Standard Group. The Kenya Union of Journalists (KUJ) issued a 14-day strike notice on July 17 to protest unpaid salaries and non-remittance of sacco deductions.
Nation Media Group (NMG), another listed media house, implemented a similar restructuring plan due to declining revenue and the challenges of adapting to the digital landscape.
The NMG layoffs, announced in June 2024, affected journalists at NTV and the print division (Daily Nation) alongside other departments.
A subsequent walkout by employees on July 18 further highlighted the mounting tensions within the company.
Standard Group has a history of mass layoffs, which has led to concerns about talent retention and the company’s ability to compete in the industry.
