The media house explained that in reaching this decision, it took into consideration, the difficult operating environment and its long-drawn effect on revenue generation.
Standard Group Limited has announced that it intends to declare over 300 employees across various departments redundant.
In a statement on Tuesday, July 30, the Mombasa Road-based media house revealed that as part of its 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 media house explained that in reaching this decision, it 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,” the statement read in part.
“We remain confident that the reorganization of the business through restructuring will place us in good stead by adopting a leaner, more efficient structure for better performance and growth.”
Standard Group added that coupled with the new leadership that is coming on board, it considers the reorganization of its 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 rationalize our products to ensure that they remain aligned with the media landscape,” added the statement.
Standard Group however noted that all the affected employees will be compensated as follows:
- Payment 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.
- 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.
“The redundancy notice takes effect upon expiry of the one-month notice issued today (31″ July 2024) and is expected to affect more than 300 employees across various departments. All the affected employees will be duly informed in writing,” the media house informed.
More to follow…