Nation Media Group To Fire Staff Again, 5 Measures Revealed

The Nation Media Group (NMG) is set to undertake another round of mass layoffs amidst tough economic times crippling Kenyan media houses.

The regional media house acknowledged in a statement released on Friday, June 7 and seen by Viral Tea that the media landscape is undergoing rapid transformation, that is, changes in audience consumption habits, technology, and other macroeconomic factors disrupting business models across the world.

NMG admitted to also facing such challenges as a result of reduced earnings from traditional platforms, occasioned by these unprecedented disruptions.

However, it took cognizant of the fact that immense digital content creation and consumption opportunities exist not only in Kenya but across the continent.

"That is why two years ago, we defined a new strategic direction as captured in our Digital Northstar "Transform into the most trusted and innovative content platform in Africa inspiring 500 million daily interactions and delivering USD 55 million digital revenue by 2027".

"In order to reap the benefits of the new digital dispensation, we must accelerate that transformation. We must evolve into a leaner, and more agile company that will innovate at pace and drive the efficient delivery of services to our customers," the statement read in part by its group Chief Executive Officer (CEO) Stephen Gitagama.

The radical decision, NMG added, would necessitate a workforce reduction, effective Friday, June 14 2024.

"This decision is incredibly difficult, and we understand the impact it will have on you and your families and the colleagues who will be left behind. However, I wish to assure you that the exercise will be carried out with utmost respect for those affected and in strict adherence to the Kenyan labour laws," added NMG.

To support those affected by the transition, the following will be made available by NMG:

1. Exit benefits as per the stipulated policies
2. Psychosocial support through our counselling service providers
3. Relocation assistance for colleagues stationed outside of Nairobi
4. Medical cover extension until December 31, 2024
5. A negotiated opt-in medical insurance scheme

"We recognise that change can be unsettling, however, all the data we have seen on content consumption presents an opportunity for growth. We are confident that by adapting and embracing these changes, we will emerge as a stronger, more agile, and profitable company.

"I urge you to support each other during this period and redouble our efforts as we continue to deliver exceptional content to our audiences and build a sustainable business," added the statement.

The media house did not reveal the names of the particular employees that would be axed, and neither did it disclose the departments the mass layoff would target.

It is not the first time NMG has embarked on mass layoffs. Two years ago, in November, it had announced mass redundancies in a bid to align itself with the current market environment.

"At the beginning of this month, we announced changes to accelerate our business transformation agenda to assure our success in the long term and the sustainability of our journalism. I want to take this opportunity to sincerely thank each one of you for the role you continue to play in our transformation journey with diligence, commitment and passion," Gitagama stated then.

"Regrettably, this refocus will result in a reorganisation of our workforce. This is an extremely difficult decision in view of the prevailing business environment. This exercise will be carried out with utmost dignity and in accordance with the Labour Laws of Kenya. We will strive to provide all the necessary support to help those affected to manage the transition."

Rather than go for the ordinary employees, the media house chose to cut short the tenures of senior editors, senior investigative journalists, long-serving news anchors and managing editors, among others. 

Recently, NMG's TV station, NTV, lost prime-time news anchor Olive Burrows to Royal Media Services' (RMS) Citizen TV.