Listed media conglomerate Nation Media Group (NMG) has announced a major restructuring that will see it laying off an unspecified number of employees, after months of speculation that it would reduce its workforce to cut costs.
- The media house announced a loss of KSh 205.7 million for the full year 2023, from KSh 318.5 million profit in 2022.
- It had posted a net profit to just KSh 2.9 million for the half-year period ended June 2023, a major decline from KSh 247.8 mn in the half-year of 2022.
- An internal memo by CEO Stephen Gitagama said the job cuts would take effect on June 14th.
“…we are evolving into a leaner, more agile organisation that will drive the efficient delivery of services to our audiences and innovate rapidly to reap the benefits of the digital economy,” the media house said in a public statement on June 7th, “Regrettably, this will necessitate a workforce reduction.”
The news comes just four months after the media company was forced to disown a fake memo circulating on the intent that said it planned to lay off 600 employees at the end of Q1. But the news of planned layoffs preceded the fake memo, including a report about plans for a major redundancy scheme reported by the publication Africa Intelligence in January.
Traditional media houses have struggled to replace lost revenues from dwindling newspaper sales and the diversion of advertising budgets to social media and other online platforms. In September 2023, NMG’s competitor Standard Media also announced redundancies, citing the same reasons and saying it planned on adopting “…a leaner, more efficient structure.”
“We are confident that by adapting and embracing these changes, we will emerge as a stronger, more agile, and profitable company,” Gitagama said in the June 7th memo.
