Though the exercise is set to target mainly correspondents, it is unclear if it will spread out across the board and affect its employees, who operate from its offices at Lions Place along Waiyaki Way.
As Patrick Quarcoo prepares to exit as Radio Africa Group (RAG) Chief Executive Officer (CEO) and founder, the media house has announced potential staff firings, possibly the last action he is expected to take before his retirement later this month.
In an internal memo to correspondents and obtained by Viral Tea, the media conglomerate famous for huge radio brands such as Kiss 100 FM, Radio Jambo, Smooth 105.5 and Classic 105 among others, revealed that it intends to streamline its operations to create “leaner and efficient organization.”
RAG stated that “As you may be aware the media industry has been going through tough times in the recent past. The changes have affected the business model and have caused unexpected changes in the business strategy and structures.”
Vehicles branded with Kiss 100 FM. /LOOKUP TV
“As part of our transformation strategy, we are working on creating a leaner and efficient organization. Regrettably, this will necessitate some structural changes,” the memo read in part.
Other than the radio stations, Radio Africa is also known for hosting media brands such as The Star newspaper and entertainment news website Mpasho.
Though the exercise is set to target mainly correspondents, it is unclear if it will spread out across the board and affect its employees, who operate from its offices at Lions Place along Waiyaki Way.
“The exercise will be carried out in batches with utmost respect to all correspondents and by the respective contractual obligations. There will be further communication in due course,” added the memo.
This latest move outlined the challenges facing legacy media houses as not only are they competing with fast-rising digital platforms but also alternative media sources including bloggers, influencers and celebrities themselves, with most of the advertising revenue being directed to the other platforms contributed by the rise of social media.
Over the past two years, RAG has faced significant challenges in retaining employees, a move that some in media circles fear should it continue, would scare off prospective employees from working in the company.
Research by Apollo.io indicates that from August 2022 to May 2024, the company hired 26 people across various departments but lost 32 employees during the same period. By May 2024, the company had a total of 314 employees.
Quarcoo in his letter to RAG staff in June termed the decision to leave the executive role as a tough one, but the necessary one for both him as a person and the company, reminiscing about starting Radio Africa in 2000 with a vision to create a platform that could inform, inspire, and connect people across Kenya and the continent.
He noted that Radio Africa was entering a pivotal phase of its journey, a transition that provided a unique opportunity for the company to realign its strategies, focusing on cost efficiencies, and enhancing its profitability and content initiatives.
The announcement comes on the heels of other media houses such as Nation Media Group (NMG) embarking on mass layoffs to align themselves with the demands of the digital space. The move has also led international media brands such as CNN to follow suit.
The Standard Group Limited on the other hand is walking on eggshells after its employees downed tools on Wednesday, July 17 in demand of their salaries.
Standard Media Group offices along Mombasa Road. /STANDARD DIGITAL