|
LISTEN TO THIS THE AFRICANA VOICE ARTICLE NOW
Getting your Trinity Audio player ready...
|
In a move that has sent shockwaves through the Kenyan media industry, The Standard Group, East Africa’s largest privately owned media company and publisher of the Kenya Standard, laid off over 300 staff members, representing approximately half of its workforce, on Wednesday, July 31.
Most of those affected were based at the company’s headquarters in Nairobi. The decision, announced in a terse letter signed “by order of the Board,” cited financial difficulties as the primary reason for the mass layoffs.
“We have been facing significant financial challenges in recent times, which have impacted our ability to sustain operations at the current level,” stated the letter.
The media giant has been grappling with a financial crisis for several months, characterized by delayed salaries and a go-slow by employees in early July.
Some employees said they had not been paid for more than six months and were not issued a payment after employment termination.
The Kenya Union of Journalists condemned the company’s handling of staff welfare, accusing the board of allowing “injustices to continue at Kenya’s oldest media house.”
“Allowing these injustices to continue at Kenya’s oldest media house will not be tolerated,” said KUJ Secretary-General Eric Oduor. “The board must take responsibility for the suffering of its staff.”
The letter to affected staff ordered them to take immediate leave as the company reorganizes itself.
“You are required to proceed on leave with immediate effect as from July 31 2024. Further communication will be shared with you as the organizational reviews take place,” the letter stated.
“This is a painful decision, but it is necessary to ensure the long-term sustainability of the business,” said a Standard Group statement.
The layoffs follow a public memo informing staff and the public of impending redundancies. The company attributed the move to “the difficult operating environment” and the rapid evolution of the digital media landscape.
A Standard staff member said the newsroom was tense as employees processed the devastating news. Several staff members expressed disbelief and anger, highlighting the irony of layoffs amidst months of unpaid salaries.
“It’s a betrayal of the trust and loyalty we’ve shown to this company,” said a senior editor, who requested anonymity. “We’ve made sacrifices, worked without pay, and yet this is how we’re rewarded.”
The company is also undergoing a leadership change, with Marion Gathoga-Mwangi appointed the new CEO. The board has linked the reorganization to the new leadership’s vision for the company.
Besides, many of the Group’s senior journalists and other staff, including the Human Resource Manager, have resigned in the last few months, with the HR boss hanging boots at the Mombasa Road-based company a week before the mass staff termination.
“We believe that this restructuring is essential for the company to adapt to the changing media landscape and emerge stronger,” said Ms. Gathoga-Mwangi.
The company has been in the spotlight for nonpayment of salaries to its staff for more than seven months, necessitating a go-slow in early July.
This is after the Kenya Union of Journalists (KUJ) weighed in and threatened to lead the Group’s staff to strike over salary delays.
On July 17, all the newsroom and support staff abandoned their workstations to protest the salary delays. The then CEO, Joe Munene, promised to pay outstanding salaries by September after the company finished fund-raising.
However, with Munene’s exit, this arrangement now remains in limbo.
Despite the bleak outlook, the company has outlined a compensation package for affected employees, including payment for days worked, severance pay, and notice pay.
LEAVE A COMMENT
You must be logged in to post a comment.