Standard Group is set to terminate the employment of more than 300 staff members.

The Standard Group (SG) has announced plans to terminate the employment of more than 300 employees as part of its strategy to navigate the challenging economic climate and evolving media landscape.

This decision, disclosed on Tuesday, July 30, marks a significant restructuring effort by the media company to stabilize its operations and align with current industry trends.

According to a notice issued by the Standard Group Board, the company has issued a notice of intention to declare redundancy in accordance with section 40 (1) of the Employment Act, 2007.

This legislative provision governs the process of redundancy and aims to ensure that employees are treated fairly during such transitions.

The Board justified this decision by citing the tough economic environment and the transformative shifts in the media sector driven by technological advancements.

The notice highlighted that the changing trends in media consumption and the rapid evolution of digital platforms have compelled the company to reassess its business model.

“In reaching this decision, we took into consideration the difficult operating environment and its prolonged impact on revenue generation. This situation has been exacerbated by shifting trends in media consumption, driven by technological changes in the digital media landscape and emerging consumer preferences, necessitating a reassessment of our business model,” the notice stated.

The redundancy notice, effective from July 31, 2024, provides a one-month period during which affected employees will be formally notified.

The Board has outlined the layoffs will impact over 300 employees across various departments, and written communication will be provided to each affected individual.

The Standard Group Board expressed confidence this restructuring will help the company adapt to the current media environment by implementing a leaner and more efficient operational structure.

The strategic realignment is aimed at fostering better performance and ensuring sustainable growth.

In addition to restructuring, the Board announced plans to reorganize the company’s product offerings to better align with the contemporary media landscape.

This move is intended to ensure that Standard Group remains competitive and continues to provide high-quality journalism.“We believe that, coupled with the new leadership coming on board, this reorganization is a crucial step toward achieving business stability and continuity. Our goal is to sustain and enhance the quality of journalism we deliver,” the Board emphasized.

Compensation and Support for Affected Employees

The company has committed to providing fair compensation to the affected employees.

Those impacted will receive payment for the days worked up to their exit date, along with severance pay of 15 days (or as specified in the Collective Bargaining Agreement for union members) for each completed year of service.

Additionally, notice pay will be provided as stipulated in employment contracts, and compensation will include payment for any accrued but unused leave days.

Pension dues or gratuity will also be settled in accordance with Scheme Rules and the terms of individual employment contracts.

This announcement comes amid ongoing labor disputes involving Standard Group. On June 30, the Kenya Union of Journalists (KUJ) issued a 14-day strike notice demanding the company address several issues, including seven months of unpaid salaries.

KUJ Secretary General Erick Oduor criticized the company’s handling of salary arrears and highlighted the financial strain experienced by employees.

KUJ’s notice called for Standard Group to establish a payment plan for the outstanding salaries, provide Sacco savings contributions, lift caps on medical claims, and halt the practice of capturing biometric data for enforcing new reporting directives.

The union had warned that failure to address these issues could lead to a complete work stoppage.

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