Journalists and other staff at Mediamax Network Limited are staring at possible job losses after the media company issued a redundancy notice as part of a wider restructuring exercise.
A memo issued to employees said the move was necessary to improve operational efficiency in response to “evolving market dynamics.”
The company pointed to a harsh business environment, reduced advertising volumes, a shrinking client base, and the rapid shift to digital as key reasons behind the shake-up.
“Mediamax is undertaking a strategic restructuring and reorganisation of its business operations to enhance overall efficiency and effectiveness in response to evolving market dynamics, including digital transformation, innovation, shifting client needs, and the introduction of punitive regulations by the Government of Kenya affecting the media industry,” a part of the notice stated.Employees affected by the decision were given a one-month notice effective July 15, with their fate expected to be determined by mid-August.
The media house which owns K24 TV, Kameme FM, People Daily newspaper and several regional stations said the reorganisation will also involve a staff evaluation and role optimisation exercise, meaning not all affected employees will necessarily lose their jobs.
“Some staff may be retained depending on the outcome of the reorganisation process and the exercise may result in merged roles, leaner teams, and job realignments,” the memo stated.Mediamax cited several industry wide challenges that have hit media revenues, including delayed payments by both national and county governments, the state’s move to consolidate advertising through a single entity, and tighter restrictions on betting and gambling ads, a major source of revenue for many media houses.
The company assured employees that the redundancy exercise would follow legal guidelines as outlined under Section 40 of the Employment Act, 2007.
Those declared redundant will be entitled to terminal dues, including salary for days worked, accrued leave, notice pay, and severance at the rate of 15 days for every year served.
However, any debts owed to the company by outgoing employees will be deducted from their final payments.
This is not the first time Mediamax has trimmed its workforce. The company previously sent home dozens of employees in 2020 during the height of the COVID-19 pandemic as it struggled with reduced revenues.