Standard Group Limited has announced plans to declare over 300 employees redundant across various departments. This decision comes as part of a restructuring strategy in response to a challenging operating environment and its impact on revenue generation.
In a statement issued on Tuesday, July 30, the Mombasa Road-based media house revealed that it has issued a notice of intention to declare redundancy to the Ministry of Labour and Social Protection, per section 40 (1) of the Employment Act, 2007.
The media house attributed this decision to shifting media consumption trends and technological changes that have impacted its business model. The statement read, “This situation has been driven by changes in media consumption, influenced by technological advancements and evolving consumer preferences, necessitating a reevaluation of our business model.”
Standard Group expressed confidence that restructuring will lead to a more efficient and effective organization, positioning the company for better performance and growth. The group also emphasized that the introduction of new leadership will support this reorganization, aimed at ensuring business stability and continuity.
As part of the redundancy process, Standard Group outlined the compensation package for affected employees, which includes:
- Payment for days worked until the date of exit.
- Severance pay of 15 days for each completed year of service (or as specified in the CBA for union members).
- Notice pay as per the employment contract.
- Payment for accrued but unused leave days.
- Pension or gratuity per scheme rules or the employment contract.
The redundancy notice will take effect one month from July 31, 2024, and will impact more than 300 employees across various departments. Affected employees will receive written notification.
Below is the tweet for the announcement
PRESS RELEASE: Business Reorganization pic.twitter.com/OBB0gFLkf4
— The Standard Digital (@StandardKenya) July 30, 2024
We stand with our colleagues at Standard Group during this difficult time. As the company undergoes these challenging changes, remember the words of Helen Keller: “Although the world is full of suffering, it is also full of the overcoming of it.” May this period of transition lead to new opportunities and renewed strength for all affected.